Latest news with #NationalGridCompany
Business Recorder
a day ago
- Business
- Business Recorder
NGC seeks 86pc hike in ‘UoSC'
ISLAMABAD: The National Grid Company (NGC) erstwhile NTDC, has sought an increase of about 86 percent in its Use of System Charges (UoSC)/kW/month from 2022-23 to 2024-25 either on coincidental basis or non-coincidental basis as per its total revenue requirement of Rs 485.392 billion in three years. Of the total revenue requirement of Rs 485.392 billion for three years, Rs 112.389 billion has been sought for FY 2022-23, Rs 163.455 billion for FY 2023-24 and Rs 209.548 billion in 2024-25. The company's top projects' management was grilled by the Parliamentary oversight Panels for massive mismanagement and corruption in projects funded by the development partners. Use of System Charges: Higher unit cost will make power trade unfeasible? The tariff petition states that after including less income of (Rs 5.216 billion) in 2022-23, (Rs 6.863 billion) in FY 2023-24 and (Rs 7.011 billion) in 2024-25, NGC has slashed its revenue requirement of Rs 112.389 billion for 2022-23, Rs 163.455 billion in 2023-24 and Rs 209.548 billion for FY 2024-25. According to the tariff petition submitted to National Electric Power Regulatory Authority (Nepra), NGC requested for an increase of 24.8 per cent (coincidental) to Rs 885.07 kW/month for three years (from 2022-23 to 2024-25 from existing from Rs 712.49 kW/month) whereas the requested increase in non-coincidental charges is 24 per cent to Rs 667.03/kW/month from Rs 538.66/kW/month. For G.E&A, NGC has proposed Rs 18.097 billion for 2022-23, Rs 24.330 billion for 2023-24 and Rs 24.961 for 2024-25. R&M- Rs 1.555 billion for 2022-23, Rs 1.831 billion for 2023-24 and Rs 2.373 billion for 2024-25. Insurance – Rs 305 million for 2022-23, Rs 344 million for FY 2023-24 and Rs 378 million for 2024-25. The company has sought compensation of Rs 15.309 billion on account of Rupee depreciation in 2022-23, Rs 16.367 billion 2023-24 and Rs 18.668 billion in 2024-25. Financial charges- Rs 16.021 billion in 2022-23, Rs 19.697 billion 2023-24 and Rs 20.661 billion in 2024-25. Prior Year Adjustment (PYA), Rs 9.450 billion in 2022-23, Rs 38.528 billion in 2023-24 and Rs 92.774 billion on 2024-25. Corporate Tax, Rs 3.245 billion FY 2022-23 and Rs 2.016 billion in 2023-24. However, the amount for the FY 2024-25 is likely to be shared during the public hearing. Pension fund contribution – Rs 3.838 billion in FY 2022-23, Rs 4.916 billion in 2023-24 and Rs 6.146 billion 2024-25. Exchange loss/ (gain) Rs 2.428 billion in FY 2022, Rs (892 million) in 2023-24 and Rs 972 million 2024-25. According to the tariff petition, NGC has sought Return of Rs 47.312 billion in FY 2022-23, Rs 63.181 billion in 2023-24 and Rs 49.625 billion in 2024-25. For MDI (non-coincidental) -Kw,an amount of Rs 26.158 billion has been proposed for FY 2022-23, followed by Rs 25.287 billion for 2023-24 and Rs 26.179 billion for FY 2024-25. For Use of System Charges (UoSC) (non-coincidental) Rs 358.04 million in FY 2022-23/kW/month, Rs 538.66 million/kW/month in FY 2023-24 and Rs 667.03 million/kW/month in FY 2024-25. The NGC has also sought Rs 19.589 billion for FY 2022-23, Rs 19.118 billion in FY 2023-24 and Rs 19.641 billion/kW in 2024-25. The Company has also proposed UoSC rate (coincidental) Rs 478.12 million in FY 2022-23, Rs 712.49 million in FY 2023-24 and Rs 889.07 million on FY 2024-25. According to Nepra, the petitioner has sought following relief in the tariff petition; (i) proposed Tariff (UoSC) be granted either on co-incidental basis or non-coincidental basis; (ii) allow claim for the recovery of all legitimate costs incurred prudently during FY 2022-23, FY 2023-24 & FY 2024-25 in accordance with Nepra Standard and Guidelines 17 (3)(i) to run the business; (iii) allow cost of debt in light of the GoP relent policies of the respective loans along with reasonable spread; (iv) true-up the Transmission Investment Plan FY 2023-25 according to the actual expenditure incurred by NGC; (v) approve the proposed mechanism for ISMO to ensure smooth transition and operational efficiency; (vi) continue/retain the existing payment mechanism of PMLTC invoices and direct CPPA-G to ensure timely/prompt payments; and (vii) allow T&T losses on as per actual basis and the assessment may be finalized based upon the outcome of independent consultant study on NGC T&T losses. Nepra has sought comments on the tariff petition of NGC within seven days so that these can be made part of the discussion on the day of public hearing. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
Arbitral award payment: NGC calls for resolving issue with Iranian firm
ISLAMABAD: The National Grid Company (NGC), formerly known as NTDC, has proposed that the federal government resolve the outstanding arbitral award payment issue with the Iranian company GAM ARAK through a committee currently working on an out-of-court settlement under the Iran-Pakistan Gas Project, sources told Business Recorder. According to sources, following a meeting held on July 17, 2025, regarding the outstanding payment under a foreign arbitral award rendered in favor of NGC against GAM ARAK Industrial Co, NGC has submitted a detailed report to the government in Islamabad. The report is intended to assist the Iranian Consulate in facilitating an amicable resolution. The matter concerns the enforcement of an award issued by the International Chamber of Commerce (ICC) in Arbitration Case No. 2272412F IAYZ, seated in Paris, on April 21, 2020, with a corrective addendum issued on July 28, 2020. As per the latest financial calculations, the total amount due — including accrued interest — stands at approximately $3.658 million as of June 30, 2025. Despite multiple reminders and negotiation efforts, GAM ARAK has yet to honor the award, NGC stated. Backed by legal counsel, the National Grid Company of Pakistan remains committed to safeguarding national and public interests through continued engagement focused on a negotiated settlement. BMP hails $10bn Pakistan-Iran trade target, demands removal of trade barriers 'We highly appreciate the constructive nature of our meeting, during which the complexities of the matter and the legal avenues pursued both domestically and internationally were transparently discussed,' said the Chief Law Officer of NGC. The company further noted that assurances received from the Iranian Embassy in Islamabad — regarding efforts to engage GAM ARAK via the Chambers of Commerce in Iran — represent a positive and practical step toward compliance. In line with Board of Directors directives to prioritize amicable resolution, NGC has highlighted specific settlement avenues related directly to Iranian companies and governmental authorities, based on the latest legal and strategic framework: (i) diplomatic engagement through Iranian Ministries: NGC, via Pakistan's Ministry of Energy and Economic Affairs Division, intends to approach TAVANIR, Iran's national energy company. This government-to-government dialogue is aimed at facilitating award recovery through official Iranian energy authorities, fostering cooperation and compliance with the arbitral decision; (ii) the Embassy of Pakistan in Tehran is strategically positioned to assist in engaging relevant Iranian authorities and GAM ARAK directly. This diplomatic channel is critical to encourage timely compliance, expedite communication, and promote amicable settlement through Iranian governmental and commercial contacts; (iii) additionally, it has been recommended that parallel communications be initiated through Iranian Embassy in Islamabad and other diplomatic channels, including the Iranian Chambers of Commerce, to maximize outreach and pressure for compliance; and (iv) NGC has also noted the significance of the Prime Minister's notified committee on the out of Court Settlement under the Iran-Pakistan Gas Project. Engagement through this committee could present additional avenues to foster mutual cooperation and facilitate settlement outcomes beneficial to both parties. NGC argued that to support Iranian embassy's ongoing efforts and ensure full transparency, detailed summary of final award of June 30, 2025 is Rs 885,300,369 and $ 3,116,158 but after addition of delayed payment, cumulative amount is Rs 1,039,378,822 and $ 3,658,496. 'We solicit Iranian embassy's continued coordination on this matter, confident that its engagement will promote constructive dialogue, encourage GAM ARAK'S compliance, and secure a timely resolution beneficial to all parties concerned,' said CLO NGC in the letter. Copyright Business Recorder, 2025
Express Tribune
14-06-2025
- Business
- Express Tribune
Blacklisted firm declared eligible for NGC tender
The National Grid Company (NGC) has declared a blacklisted firm eligible to participate in a tender for a 135-kilometre transmission line project. According to details, NGC issued a tender for laying a 135-km transmission line. Four companies were declared eligible after a technical evaluation. A company previously blacklisted by the Asian Development Bank for indulging in fraudulent practice and furnishing fake documents was also declared eligible after the technical evaluation. Interestingly, a blacklisted firm cannot be declared eligible for participating in any tender. In a letter sent to NGC managing director, a Saudi investment company said the firm came to Pakistan for making investment over the invitation of the government but the blacklisted company was declared eligible, which amounts to irregularity. The incident raised the question mark on the transparency in the NGC tender process. The Saudi company demanded that investigation be conducted into the matter for restoring the confidence of foreign investors. Sources said some NGC officials are changing rules to declare the blacklisted company eligible. When Express News contacted NTDC MD Engineer Shahid Nazeer over the matter, he said the letter of Saudi company was forwarded to procurement and contract management department.
Business Recorder
30-05-2025
- Business
- Business Recorder
Shahid Nazir made NGC managing director
LAHORE: The Board of Directors of the National Grid Company (NGC) of Pakistan Limited (formerly NTDC), in its 297th meeting, has approved the appointment of Engr Muhammad Shahid Nazir as the Managing Director of NGC. A formal notification has been issued in this regard. Prior to this appointment, Engr Shahid Nazir was serving as the General Manager Project Delivery (North) at NGC. He brings over 32 years of experience in the power transmission sector and has been instrumental in the execution of several key power transmission projects. Engr. Shahid Nazir holds a Bachelor's degree in Electrical Power Engineering from the University of Engineering and Technology (UET) Lahore, a Master's degree in Electrical and Electronic Engineering from the University of South Asia, Lahore and an MBA in Finance from the University of the Punjab, Lahore. Throughout his distinguished career, he has played leading roles in major projects such as the Matiari-Lahore Transmission Line under the China-Pakistan Economic Corridor (CPEC) and the Dasu Transmission Line Project, where he served as Chief Engineer. He has also represented Pakistan abroad on deputation. His appointment follows the retirement of Engr. Muhammad Waseem Younas, who completed his term as Managing Director yesterday (Thursday). On his final day, Engr Waseem Younas met with NGC officers and staff, expressing his best wishes and appreciation for their support. Engr Shahid Nazir has been assigned with the role of Managing Director on stop-gap basis and will serve in this capacity until a permanent appointment is made. On appointment, talking to the officers and employees, Engr Shahid Nazir expressed his gratitude to the Board of Directors for their trust. He reaffirmed his commitment to ensuring timely completion of ongoing NGC projects. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
Shahid Nazir appointed as managing director of NGC Pakistan
The Board of Directors of the National Grid Company (NGC) of Pakistan Limited (formerly NTDC), in its 297th meeting, has approved the appointment of Engr Muhammad Shahid Nazir as the Managing Director of NGC. A formal notification has been issued in this regard. Prior to this appointment, Engr Shahid Nazir was serving as the General Manager, Project Delivery (North) at NGC. He brings over 32 years of experience in the power transmission sector and has been instrumental in the execution of several key power transmission projects. Nazir holds a Bachelor's degree in Electrical Power Engineering from the University of Engineering and Technology (UET) Lahore, a Master's degree in Electrical and Electronic Engineering from the University of South Asia, Lahore and an MBA in Finance from the University of the Punjab, Lahore. NGC BoD constitutes restructuring body to oversee transition Throughout his distinguished career, he has played a leading role in major projects, including the Matiari-Lahore Transmission Line under the China-Pakistan Economic Corridor (CPEC) and the Dasu Transmission Line Project, where he served as Chief Engineer. He has also represented Pakistan abroad on deputation. His appointment follows the retirement of Engr Muhammad Waseem Younas, who completed his term as Managing Director on Wednesday. On his final day, Younas met with NGC officers and staff, expressing his best wishes and appreciation for their support. Shahid Nazir has been appointed as Managing Director temporarily and will serve in this capacity until a permanent appointment is made. On appointment, talking to the officers and employees, Engr Shahid Nazir expressed his gratitude to the Board of Directors for their trust. He reaffirmed his commitment to ensuring the timely completion of ongoing NGC projects.
