Latest news with #PowerDivision
Business Recorder
2 days ago
- Business
- Business Recorder
2 Sindh-based DISCOs' working irks PD
ISLAMABAD: The Power Division has expressed displeasure at the performance of two Sindh-based power Distribution Companies (DISCOs) — SEPCO (Sukkur Electric Supply Company) and HESCO (Hyderabad Electric Supply Company). Responding to questions during a meeting of National Assembly Standing Committee on Power, presided over by Muhammad Idrees, Federal Minister for Power, Awais Leghari stated that the performance of SEPCO and HESCO is disappointing. Power Division is using all its influence to change the incumbent Boards of both Discos but did not succeed due to political interference by the Peoples Party. Acting CEO HESCO, who is a Charted Accountant continues to occupy the office contrary to the wishes of Power Division. Poor performance of 3 Discos earns PD's ire 'The level of losses is decreasing in other DISCOs, but in these two Companies, the loss rate is increasing,' said the Minister. In the last meeting of Standing Committee, acting CEO HESCO had challenged the claims of both the Minister and Ministry's officials about losses in HESCO. During the committee proceedings, Rana Muhammad Hayat enquired if electricity tariffs will be reduced further in the upcoming fiscal year? Nepra Chairman Waseem Mukhtar replied that as of now, the electricity rates are expected to remain the same. Rana Hayat noted that 30 per cent tariff relief has been given to industry and asked why agriculture has not been given any concessions? Secretary Power Division, Dr. Fakhray Alam Irfan stated that the relief to the industrial sector was made possible by ending cross-subsidy. PAC Chairman Junaid Akbar, who is also member of Power Committee stated that four months ago he had offered to personally remove illegal connections (Kundas), adding that they cooperated and yet the line losses are not decreasing. 'Because line losses aren't reducing, consumers are without electricity for up to eight hours. The work isn't done, yet elected representatives are blamed,' Akbar maintained. Answering Junaid Akbar, Chief Executive PESCO stated that due to cooperation there has been significant improvement, and more is expected in the next month, adding that the power utility company provides relief on annual basis instead of monthly. He, however, was directed by the Minister for Power to extend relief in load shedding to the consumers on monthly basis. The committee was informed that for vulnerable consumers, the price has been reduced by 48 to 50 percent. The number of such consumers is 17 million. Power Division has sought an increase in the subsidy of Rs. 294 billion for protected consumers. The burden of consumers' subsidies for the poor falls on the middle class. The new base electricity tariff will be implemented from July 1, 2025. The impact of the July re-basing will be reflected in the August electricity bills. Copyright Business Recorder, 2025
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
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
Express Tribune
3 days ago
- Business
- Express Tribune
NEPRA decision on KE tariff alarms Power Division
The Power Division has expressed serious concerns over the seven-year Multi-Year Tariff (MYT) decision recently issued by the National Electric Power Regulatory Authority (NEPRA) for K-Electric, warning it could have far-reaching financial and policy implications. Federal Minister for Power Awais Leghari has warned that such determinations could negatively impact investment confidence in future MYT periods. In a statement issued on the social media platform 'X' on Wednesday, the minister said the ministry has observed some serious concerns regarding NEPRA's multiple decisions about K-Electric's licenses for generation, transmission, distribution and supply, adding that these decisions also touch upon the investment plan for the upcoming multi-year tariff period. "These rulings have significant long-term effects on consumer tariffs and the federal government's subsidies within a uniform tariff regime." He revealed that the ministry was planning to review the recently issued determinations related to transmission, distribution, and supply. Meanwhile, a reconsideration of the earlier generation tariff decision was awaiting NEPRA's attention, despite being submitted back in December 2024. "This delay poses serious financial implications for the power sector and its subsidies." Additionally, he cautioned that if certain areas were not addressed, they could negatively impact consumers and the regulatory environment, potentially hindering Pakistan's efforts to encourage private participation in the distribution sector.
