Latest news with #Nepra
Business Recorder
2 hours ago
- Business
- Business Recorder
Consumers of KE, others: Govt to pass on Rs53.4bn relief under QTA for Q4'25
ISLAMABAD: The federal government is set to pass on financial relief of Rs 53.4 billion to electricity consumers across the country, including those served by K-Electric, under the Quarterly Tariff Adjustment (QTA) mechanism for the fourth quarter of the fiscal year 2024–25. If implemented in the billing months of August, September, and October 2025, the relief will translate into a reduction of Rs 1.75 per unit. However, if applied during September, October, and November, 2025 the relief will increase to Rs 2.10 per unit. National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a public hearing on August 4, 2025, on a petition filed by the Central Power Purchasing Agency – Guaranteed (CPPA-G) on behalf of distribution companies (Discos). QTA & MTA: Nepra cuts tariffs for Discos and KE The petition seeks a negative adjustment of Rs 53.393 billion, mainly due to reduced capacity payments resulting from Negotiated Settlement Agreements (NSAs) between the Government of Pakistan and Independent Power Producers (IPPs) or Government Power Plants (GPPs). According to data shared with Nepra, Islamabad Electric Supply Company (IESCO) has sought negative adjustment of Rs 1.040 billion for fourth quarter; Lahore Electric Supply Company (LESCO) Rs 12.758 billion, Gujranwala Electric Power Company (GEPCO) Rs 6.132 billion , Faisalabad Electric Supply Company (FESCO) Rs 15.579 billion, Multan Electric Power Company (MEPCO) Rs 8.457 billion, Peshawar Electric Supply Company (PESCO) Rs 2.7 billion, Hyderabad Electric Supply Company (HESCO) Rs 6.818 billion, Quetta Electric Quetta Supply Company (QESCO) positive Rs 3.594 billion, Sukkur Electric Supply Company (SEPCO) Rs 504 million and Tribal Electric Supply Company (TESCO) - Rs 2.985 billion. The total requested amount for variable O&M is 182 million, Use of System Charges (UoSC) and Market Operator Fee (MOP) Rs 804 million and impact of incremental units negative Rs 662 million. According to Nepra, in the light of policy guidelines issued by the federal government for application of uniform quarterly adjustments, Discos fourth quarterly adjustment for FY 2024-25to be determined by the Authority, shall also be applicable on the consumers of K-Electric. Copyright Business Recorder, 2025
Express Tribune
4 hours ago
- Business
- Express Tribune
K-Electric tariff increase
Listen to article In a deeply troubling move that has rightly sparked political outrage across party lines, Nepra has approved K-Electric's multi-year tariff that allows the utility to recover a staggering Rs50 billion in write-off losses from consumers. This decision, which effectively permits K-Electric to pass on the cost of unpaid bills and inefficiencies to its paying customers, raises serious questions about the priorities and regulatory philosophy of Nepra. That both the treasury and opposition benches in the Sindh Assembly stood united in condemning the move is telling. Rarely do provincial legislators find common ground on economic matters, but in this instance, the sheer injustice of the decision appears to have bridged political divides. It is not difficult to see why. In a city already reeling from record inflation and inconsistent electricity supply, saddling ordinary citizens with the burden of corporate write-offs amounts to little more than injustice. The justification, ostensibly, lies in ensuring K-Electric's financial viability and long-term service delivery. Yet this line of reasoning is difficult to defend when viewed against the company's consistent failure to control transmission losses, curb theft and improve recovery. That a private, profit-making entity can recover its losses from a captive consumer base — without showing commensurate accountability or performance — is emblematic of the regulatory capture and policy drift that plague Pakistan's energy sector. More broadly, the decision sets a dangerous precedent. If utilities are allowed to routinely offload their losses like this, there remains little incentive for reform or efficiency. Nepra must revisit its decision and hold K-Electric to higher standards of transparency and fiscal responsibility. The answer to chronic power sector woes cannot lie in continuously penalising the consumer.
Business Recorder
a day ago
- Business
- Business Recorder
Permission to KE to recover Rs50bn: Sindh PA speaks in unison against Nepra
KARACHI: The Sindh Assembly on Monday witnessed strong cross-party consensus against Nepra's recent decision allowing K-Electric to recover Rs50 billion from Karachi residents through electricity bills. The move sparked protests from both the treasury and opposition benches, as lawmakers argued that the decision amounted to 'collective punishment' for power theft committed by a few. The issue was raised through a resolution presented by Muttahida Qaumi Movement (MQM) lawmaker Muhammad Aamir Siddiqui, who told the House, 'Nepra decided on July 18 that K-Electric would recover Rs50 billion from the public. This is unjust. Nepra has no right to penalize an entire area for the fault of one individual.' K-Electric write-offs: NEPRA allows Rs50 billion as 'full and final claim' Aamir Siddiqui said the failure of K-Electric to collect dues or curb theft was now being blamed on honest bill payers. 'They failed to stop electricity theft and couldn't collect the dues, but now they want to punish those who do pay. We wrote to Nepra, but instead of corrective action, they passed an illegal order. It must be withdrawn. This additional burden will start appearing in August bills,' he said. Senior Minister for Information Sharjeel Inam Memon supported the resolution, saying, 'This isn't just K-Electric. The same issue exists with HESCO and SEPCO. These companies punish people collectively, which is unconstitutional. When one person makes a mistake, the whole city is punished. In rural areas, one meter serves an entire village.' He recalled that he had filed a petition in the high court five years ago against such practices, which is still pending. 'Our responsibility is to protect the human rights of our people. We support this resolution fully,' Memon said. Zia-ul-Hasan Lanjar said, 'This matter will be debated in detail tomorrow.' Acting Speaker Anthony Naveed gave his ruling that discussion on the resolution would be held on Tuesday. The Assembly was then adjourned until 1:30 pm the next day. Earlier during the session, the Sindh Control of Narcotics (Amendment) Bill was passed. Zia-ul-Hasan Lanjar presented the bill, explaining that a new narcotics control department had been established in 2024 and that several related matters had reached the courts. 'Each district now has a designated narcotics judge. Earlier, such cases were handled by session or additional session judges. After this amendment, police will be empowered to handle narcotics cases under the new law,' he said. Zia-ul-Hasan Lanjar added that independent courts would now be set up for these cases and that legislative loopholes had been addressed through the latest amendments. The Assembly rejected a call-attention notice moved by Aamir Siddiqui regarding an additional toll tax being collected between Karachi and Bahria Town. 'Citizens are paying Rs240 just to travel to and from Bahria Town. The federal government is collecting this toll, and it should be stopped,' Siddiqui urged. Zia-ul-Hasan Lanjar opposed the motion, and Deputy Speaker Anthony Naveed advised the member to bring a resolution instead. 'If you table a resolution, we will pass it and send it to the federal government,' he said. Meanwhile, during the question hour related to the Planning and Development Department, Parliamentary Secretary Sadia Javed responded to various queries from lawmakers. She provided updates on development schemes across the province and answered questions about the pace of ongoing projects. Responding to another call-attention notice raised by MQM's Shariq Jamal regarding rising crime in Model Colony, Zia-ul-Hasan Lanjar assured the House that maintaining public safety was the government's responsibility. 'We are trying to bring down crime rates. Despite criticism on social media, we have engaged with the community and business leaders to improve the situation,' he said. He added that reforms in traffic laws and policing were underway. 'We want citizens to feel safe when they visit a police station. We will also establish a model police station in Model Colony,' Lanjar announced. Later, in response to a notice by MQM's Rashid Khan concerning the closure of classes at Government College Kali Mori in Hyderabad, Education Minister Syed Sardar Shah said, 'This college is of historical significance. It was established in 1917. In 2018, the Assembly passed an act that the college would be upgraded to university level.' He clarified that although the college had been separated from the Colleges Department, it continued to function. 'There's a misconception on social media that the college is being shut down. That is not true. The act clearly states that the college will be managed by the university,' he said. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
Karachi trade bodies urge Nepra to upload KE's May FCA plea on website
ISLAMABAD: Trade associations from Karachi have urged National Electric Power Regulatory Authority (Nepra) to upload K-Electric's Fuel Charges Adjustment (FCA) petition for May 2025 without further delay. In letters addressed to Nepra Registrar, the Bin Qasim Association of Trade and Industry (BQATI), Korangi Association of Trade and Industry (KATI), and Pakistan Tanners Association (PTA) raised concerns over the prolonged unavailability of KE's FCA request. The Associations anticipate a significant negative adjustment in May FCA, which could offer relief to industries struggling with high energy costs. However, the federal government is reportedly aiming to implement a uniform FCA policy across the country — an approach that could delay or reduce the impact of FCA adjustments specific to K-Electric's consumers. FCA: Nepra, Karachi stakeholders oppose PD proposal In April 2025, the Power Division attempted to block KE's FCA adjustment under the pretext of a uniform national FCA policy, despite the absence of formal approval from the Federal Cabinet. Nepra declined to act on the Power Division's request, citing the lack of official government authorization. 'We wish to express concern over the continued non-availability of K-Electric's FCA petition for May 2025 on Nepra's official website. Given the significant impact of monthly FCA adjustments on the cost structure of industrial operations, timely public access to this petition is essential for transparency, stakeholder engagement, and financial planning,' the Associations said in a joint statement. They urged Nepra to upload the petition promptly and schedule the associated public hearing at the earliest opportunity. 'We hope the regulatory process will proceed independently and remain free from external delays or influence, in line with Nepra's statutory role as an autonomous and impartial regulator. Your prompt attention to this matter will be greatly appreciated by the industrial community of Karachi,' the letter stated. This issue is expected to surface during the public hearing on the FCA petitions of power distribution companies (DISCOs) scheduled for July 30, 2025. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
Has Rs1.71/unit electricity relief vanished?
It was widely expected that the government would continue the Rs1.71 per unit electricity subsidy component—backed by the IMF staff-level agreement, which explicitly cited plans to fund the relief via additional Petroleum Levy collections. Yet, to the surprise of many, the subsidy appears to have quietly disappeared—if not formally withdrawn, then at least absent from the electricity bills issued for July 2025. Recall that the only component explicitly extended into FY26 was the Rs182 billion relief—equivalent to Rs1.71 per unit—for all non-lifeline consumers, financed through the enhanced Petroleum Levy. The government, in its communication with the IMF, had committed to maintaining this limited relief until June 30, 2026. Significant ambiguity now surrounds the fate of this relief and its continuity into FY26. The matter came up during Nepra's recent tariff hearing, but the Ministry of Energy's remarks did little to resolve the uncertainty. In its response, the Ministry noted that the 'average applicable consumer tariff in July 2025 would be lower by around seven rupees compared to July 2024.' While ostensibly reassuring, the phrasing raises more questions than it answers. No assumptions were disclosed, nor was it clarified whether the comparison referred to gross billing or adjustments embedded within the base tariff trajectory. With the Rs1.71 per unit subsidy now seemingly off the table, the month-on-month increase in tariffs for non-lifeline protected consumers—who account for the bulk of domestic electricity consumption—exceeds 30 percent. Previously, under the assumption of subsidy continuity, first and second protected slabs were projected to rise by 11 and 9 percent, respectively. They now stand to increase by 35 and 26 percent, respectively. Among non-protected slabs, effective tariffs for the first three categories are slated to rise by 12, 9, and 8 percent month-on-month. This development implies that effective tariffs in July may be materially higher than assumed—at odds with both prior policy signalling and the inflation projections built on that premise. Whether this reflects a temporary lapse awaiting formal notification, an oversight in tariff design, or a quiet policy reversal is yet to be clarified. What is clear, however, is that this shift—if sustained—has real implications that one hopes the Pakistan Bureau of Statistics (PBS) appropriately incorporates any change in effective tariffs into its CPI computation, lest the official inflation trajectory miss a key price signal affecting millions.
