Latest news with #Nepra
Business Recorder
2 days ago
- Business
- Business Recorder
KE tariff: Review plea will be filed with Nepra: minister
ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Khan Leghari has announced that the federal government will file a review petition with Nepra regarding K-Electric's tariff, emphasizing that companies should generate profits through efficiency — not subsidies or charitable support. His statement came a day after he took to X and raised several questions about NEPRA's recent determination regarding K-Electric. On Thursday, speaking to the media after addressing an energy workshop organized by the Centre for Economic Research in Pakistan (CERP), Leghari said the Power Division is preparing the petition to ensure that neither the federal government nor electricity consumers face undue financial pressure. Nepra's decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision 'We are moving towards privatization and K-Electric — like other private investors—should earn profits based on performance,' he said. 'Handouts are not a sustainable model; efficiency must take precedence. Regulatory laws must be enforced in all distribution companies (DISCOs).' KE's approved tariff is 18 per cent higher than previously approved Multi-Year Tariff. Responding to a question, Leghari said the Power Division would ask Nepra to ensure fair pricing for consumers. 'The burden of K-Electric's current tariff structure is being carried by consumers of other distribution companies through cross-subsidization and taxes,' he noted. 'We hope Nepra will make decisions that benefit both the country and its people,' he added. On net metering, the minister said the policy has been revisited and stakeholder consultations have been conducted. 'If approved, the revised net metering policy will be implemented within a month,' he stated. Leghari also highlighted reductions in electricity costs: 'Electricity prices have decreased by 31% for the industrial sector and by 50% for 18 million household consumers.' However, he acknowledged that climate change has led to a drop in hydropower generation, forcing reliance on more expensive sources. 'The Fuel Price Adjustment (FPA) varies monthly, but overall, electricity prices in Pakistan have declined,' he said. On the circular debt issue, Leghari revealed that the government plans to borrow from banks to eliminate the mounting circular debt soon. Earlier, while addressing the workshop, the minister said the Prime Minister will soon announce a new industrial tariff policy aimed at enhancing competitiveness. He reiterated the government's commitment to renewable energy, noting that 3,000 megawatts of furnace oil-based generation power plants have shut down in recent months. Leghari expressed the view that the government's aim is to reduce power tariffs on a sustainable basis. He stated that a revolution in alternative energy sources has arrived in Pakistan adding that solar energy is a promising source and that there has been an increase in solar energy production. 'In the past, estimates in the energy sector were not realistic,' he added. 'We have been conducting research and analysis in the energy sector for the past year. We are reviewing agreements with IPPs (Independent Power Producers) and trying to detach the government from purchasing electricity in the future,' he said. The minister further stated that the inclusion of the Bhasha Dam in the electricity system will be significant. 'We are trying to ensure that consumers do not suffer due to poor planning in the electricity system,' he said. 'Reforms are being made in the transmission system. We lack the technology to assess the pressure on transformers and feeders,' he added, noting that the government is working to ensure coal and gas-powered plants do not impact the environment. 'There is ample electricity available through the grid over the next three years,' he said. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
NEPRA reserves ruling on tariff
Listen to article The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its judgement on a request for increase in electricity rates up to Rs1.27 per unit on account of fuel charges adjustment (FCA) for April 2025. Nepra held a hearing to consider the tariff hike plea submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G). The hearing was chaired by Nepra chairman and attended by the representatives of CPPA-G, officials of the Ministry of Energy, business community members, journalists and members of the public. According to Nepra, CPPA-G had filed a request for a tariff hike of Rs1.268 per unit under the FCA for April. If approved, the increase will be applicable for one month only. The proposed adjustment will apply to all consumers of power distribution companies (DISCOs), excluding lifeline consumers, pre-paid meter users and electric vehicle charging stations. Nepra also stated that the adjustment would not be applicable to K-Electric consumers. The regulator emphasised that it carefully heard the views of all relevant stakeholders. It will now conduct further scrutiny of the data before issuing a detailed decision. According to the CPPA-G petition, the actual fuel cost borne during April was Rs9.9197 per kilowatt-hour (kWh) while the reference cost – used for billing consumers – was Rs7.6803 per kWh. The difference of Rs1.2685 per unit is now sought to be recovered from consumers. In its request, CPPA-G stated that a total of 10,513 gigawatt hours (GWh) of electricity was generated in April, of which 10,196 GWh – nearly 97% – was supplied to DISCOs while the rest was lost in transmission. Data revealed that power generation in the month under review remained heavily reliant on costly imported fuels. Over 20% of electricity was generated by using imported liquefied natural gas (LNG) at an extremely high cost of Rs24.26 per unit. The electricity produced from imported coal also proved expensive, costing Rs16.60 per unit. While the share of hydroelectric power was relatively significant at 21.94% and nuclear power contributed 17.91% at a low cost of Rs2.10 per unit, these cheaper sources were unable to offset the impact of expensive fuel-based generation. Local coal accounted for 14.51% of the generation at Rs11.21 per unit and gas-based power added another 8% at Rs11.82 per unit. Power generation from furnace oil, though minimal at just 0.79%, was the costliest, being recorded at Rs28.77 per unit. The petition highlighted a small quantity of power — around 0.31% – imported from Iran, which came at a high cost of Rs25.35 per unit. No generation was recorded from high-speed diesel, which is typically reserved for emergency use due to its high cost. The proposed tariff increase, if approved, will be reflected in the electricity bills of millions of consumers, excluding lifeline users.
Express Tribune
2 days ago
- Business
- Express Tribune
Regressive power tariffs
Listen to article In a decision that epitomises regulatory capture and abdication of public interest, the National Electric Power Regulatory Authority (Nepra) has sanctioned a financial travesty by allowing K-Electric (KE) to embed its operational failures directly into consumer tariffs. This week's approval of a Rs40 per unit base tariff — almost 40% higher than the national average — institutionalises "recovery losses" of up to 6.75%, rewards inefficiency and penalises law-abiding citizens for KE's inability to combat theft and billing failures. The move sets a dangerous precedent for Pakistan's power sector, entrenching corporate welfare at taxpayer expense. It is KE's responsibility to address power theft and non-payment of bills. The government may facilitate it by helping it liaise with law enforcement, but granting it such a huge benefit — effectively a subsidy — gives it an unfair advantage over government-owned distribution companies, which are required to either make 100% recovery or absorb the losses. The regulator cannot be allowed to give preferential treatment to one distribution company, whether private or public. Nepra's rationale of "market realities" is also comical. Every company in the world faces market realities. KE is welcome to stop supplying power to bill defaulters and pursue legal action against defaulters and pilferers, but forcing honest consumers to cover for dishonest ones is flat-out wrong. Rewarding failure demoralises performers. If Nepra will not defend consumers, the government must intervene — not just in court, but by reforming a regulator prioritising corporate viability over public good. The power division has already taken a welcome step by "planning to review" the new terms, but it should also straight-up ask the parliamentary standing committee on energy to force the Nepra chief to stand in parliament and defend the sweetheart deal, and explain to Karachi why the regulator is actively trying to punish citizens.
Business Recorder
3 days ago
- Business
- Business Recorder
Nepra's decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision
ISLAMABAD: The Power Division on Wednesday announced plans to file reviews of the National Electric Power Regulatory Authority's recent decisions regarding K-Electric tariffs, warning that parts of the rulings could have negative consequences for consumers if not revised. Power Minister Sardar Awais Khan Leghari took to X (formerly Twitter) to express concerns about Nepra's decisions announced during the last few days that have drawn strong reactions from the ministry. The minister's remarks came at a time when Nepra, which by law is the power sector regulator, feels helpless in implementing its directions issued to Power Division and its affiliated organizations. NEPRA approves K-Electric's MYT for supply segment Last month, during a public hearing on IEECO's Multi-Year Tariff petition , Member (Tech) Rafique Ahmad Shaikh, asked Power Division to get rid of Chief Executive Officer (CEO), for poor performance. Similar positions were seen in other Discos and NTDC, which irritated the Authority during public hearings. 'The Ministry has serious concerns regarding Nepra's multiple determinations related to K-Electric's licenses for generation, transmission, distribution, and supply. These decisions also impact the investment plan for the upcoming multi-year tariff period,' said the Power Minister. Leghari emphasized that the rulings have significant long-term implications for consumer tariffs and the Federal Government's subsidy framework under the uniform tariff regime. 'The ministry is preparing to seek a review of the recent determinations concerning transmission, distribution, and supply. Additionally, the reconsideration of an earlier generation tariff decision — submitted back in December 2024—still awaits Nepra's attention. This delay poses serious financial risks for the power sector and its associated subsidies,' he added. The minister further cautioned that unresolved issues within Nepra's rulings could negatively affect consumers and the broader regulatory environment, potentially deterring private sector investment in the distribution sector. According to a power sector expert, Nepra's annual recovery loss allowance of Rs 40 billion granted to K-Electric—totaling over Rs 320 billion across seven years. Another insider sarcastically stated that 'Minister seems super happy on Nepra's determinations'. Another expert stated that real challenge is rampant power theft and non-recovery of electricity bills in the country. On the governance side, however, the proposed bill to classify electricity theft as a criminal offense was recently rejected by lawmakers. As a result, Discos are left with no option but to recover their legitimate business costs from paying consumers — a practice observed across the country. Power Division wants to review Nepra's recent tariff determinations for K-Electric, consumers across Pakistan, including those in Karachi, already burdened with the PHL surcharge due to the continued non-recovery of dues from other government-owned Discos. The Nepra's determinations on KE Multi-Year Tariff petitions are actually removing such disparities currently present in Pakistan's power sector. Also, unlike KE previous multiyear tariff for 2017-23, there is a periodic review mechanism built in the tariff for the period 2023-30. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Nepra's decisions on KE tariffs: PD flags potential consumers harm, urges revision
ISLAMABAD: The Power Division on Wednesday announced plans to file reviews of the National Electric Power Regulatory Authority's recent decisions regarding K-Electric tariffs, warning that parts of the rulings could have negative consequences for consumers if not revised. Power Minister Sardar Awais Khan Leghari took to X (formerly Twitter) to express concerns about Nepra's decisions announced during the last few days that have drawn strong reactions from the ministry. The minister's remarks came at a time when Nepra, which by law is the power sector regulator, feels helpless in implementing its directions issued to Power Division and its affiliated organizations. NEPRA approves K-Electric's MYT for supply segment Last month, during a public hearing on IEECO's Multi-Year Tariff petition , Member (Tech) Rafique Ahmad Shaikh, asked Power Division to get rid of Chief Executive Officer (CEO), for poor performance. Similar positions were seen in other Discos and NTDC, which irritated the Authority during public hearings. 'The Ministry has serious concerns regarding Nepra's multiple determinations related to K-Electric's licenses for generation, transmission, distribution, and supply. These decisions also impact the investment plan for the upcoming multi-year tariff period,' said the Power Minister. Leghari emphasized that the rulings have significant long-term implications for consumer tariffs and the Federal Government's subsidy framework under the uniform tariff regime. 'The ministry is preparing to seek a review of the recent determinations concerning transmission, distribution, and supply. Additionally, the reconsideration of an earlier generation tariff decision — submitted back in December 2024—still awaits Nepra's attention. This delay poses serious financial risks for the power sector and its associated subsidies,' he added. The minister further cautioned that unresolved issues within Nepra's rulings could negatively affect consumers and the broader regulatory environment, potentially deterring private sector investment in the distribution sector. According to a power sector expert, Nepra's annual recovery loss allowance of Rs 40 billion granted to K-Electric—totaling over Rs 320 billion across seven years. Another insider sarcastically stated that 'Minister seems super happy on Nepra's determinations'. Another expert stated that real challenge is rampant power theft and non-recovery of electricity bills in the country. On the governance side, however, the proposed bill to classify electricity theft as a criminal offense was recently rejected by lawmakers. As a result, Discos are left with no option but to recover their legitimate business costs from paying consumers — a practice observed across the country. Power Division wants to review Nepra's recent tariff determinations for K-Electric, consumers across Pakistan, including those in Karachi, already burdened with the PHL surcharge due to the continued non-recovery of dues from other government-owned Discos. The Nepra's determinations on KE Multi-Year Tariff petitions are actually removing such disparities currently present in Pakistan's power sector. Also, unlike KE previous multiyear tariff for 2017-23, there is a periodic review mechanism built in the tariff for the period 2023-30. Copyright Business Recorder, 2025
