Latest news with #Rs1.27
Express Tribune
5 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.
Business Recorder
23-05-2025
- Business
- Business Recorder
Power generation rises — but at what cost?
Finally, there is some surge in power generation (read: consumption). It increased by 22 percent year-on-year in April 2024 to reach 10,513 GWh, almost matching the reference generation level. Multiple factors are contributing to this increase. One reason is the reduction in the power tariff for the April–June period, which is encouraging higher consumption from the grid. Another factor is the shift of captive power consumers to the grid, as gas has become prohibitively expensive for them. The third contributor is higher-than-usual temperatures in April, which drove up air-conditioning demand. However, the increase in generation is primarily from expensive imported sources. RLNG-based generation rose by 10 percent year-on-year and was 42 percent higher than the reference generation. Imported coal-based generation jumped to 1,054 GWh from almost zero in April last year—115 percent higher than the reference. In contrast, cheaper indigenous sources saw a decline. Nuclear power generation fell by 8 percent year-on-year and was 22 percent below the reference, while hydropower increased by 11 percent year-on-year but still lagged 29 percent behind the reference level. As a result, the Fuel Cost Adjustment (FCA) turned positive in April 2025 for the first time in nine months, rising by Rs1.27 per unit to Rs8.95 per unit. The key questions now are: How sustainable is this increase in power generation? And why is the generation mix skewed toward more expensive sources? The power tariff reduction includes components that are expected to continue into the next fiscal year. One such component is the Tariff Differential Subsidy (TDS), which may persist due to higher petroleum levies. Another is the Quarterly Tariff Adjustments (QTA), including concessions from IPPs, which are likely to be incorporated into the next year's base tariff. Overall, the reduction in tariffs is expected to persist and should continue to incentivize higher grid-based consumption. This trend is also prompting captive power users to transition to the grid. Captive plants used 110,000 bbtu of gas annually; at 40 percent efficiency, that equates to 12,907 GWh. If 50 percent of that demand shifts to the grid, it could increase monthly consumption by around 500 GWh. This appears to be happening and may continue. Household consumption is closely tied to weather patterns. The national average temperature in April 2025 was 27.9°C—significantly higher than the long-term average of 24.5°C—ranking as the second highest April temperature in 65 years. There may be fluctuations in air-conditioning demand in the coming months depending on weather variations, though temperatures in May 2025 have continued to rise. Industrial demand, on the other hand, is expected to remain elevated through FY26. As for the second question—why the merit order was distorted and why increased generation came from costlier fuels—sources indicate that nuclear generation in the south was constrained due to technical issues and was replaced by imported coal. In the north, lower hydel generation—caused by reduced water availability—was partially offset by increased reliance on RLNG. Furthermore, excessive RLNG usage may be linked to surplus volumes of must-import RLNG, as captive consumers have begun shifting away from it. Hydel generation is likely to remain weak this season, while RLNG consumption may stay elevated. This will continue to exert upward pressure on FCA, potentially offsetting the benefit from lower QTA and TDS. Copyright Business Recorder, 2025
Express Tribune
22-05-2025
- Business
- Express Tribune
Consumers brace for Rs1.27-per-unit hike
Listen to article Electricity consumers are set to face a tariff increase of up to Rs1.27 per unit on account of fuel cost adjustment for April 2025 as prices of fuels used in power generation increased. The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a petition to the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs1.27 per unit in electricity tariff under the monthly fuel charges adjustment mechanism. If approved, the tariff hike will put a total burden of Rs13 billion on consumers. The regulator will hold a public hearing on May 29. According to data submitted to Nepra, hydel generation rose 11.4% to 2,306 gigawatt hours (GWh) in April 2025 as compared to 2,070 GWh in April 2024. Power generation by local coal-fired plants stood at 1,525 GWh, which constituted 14.51% of total production at a price of Rs11.2115 per unit against generation of 881 GWh in April 2024 at Rs15.2284 per unit. It showed a hike of 73% in local coal-based electricity production. By consuming imported coal, power plants produced 1,054 GWh at Rs16.6062 per unit, accounting for 10.02% of total production. In April last year, only 21 GWh had been produced at a price of Rs22.8405 per unit. Power generation through the residual fuel oil totaled only 83 GWh at Rs28.7679 per unit. Electricity generation by gas-based plants hit 842 GWh, constituting 8.01% of total production at Rs11.8166 per unit. In comparison, 975 GWh had been produced in April 2024 at a price of Rs13.2535 per unit. Re-gasified liquefied natural gas (RLNG)-based power plants produced 2,157 GWh, having a 20.52% share in total generation at Rs24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs2.1038 per unit, contributing 17.91% to total generation, against the production of 2,043 GWh in April 2024, which exhibited a decrease of 7.9%. Electricity import from Iran came in at 32 GWh at Rs25.3465 per unit while power generation from bagasse was recorded at 37 GWh at a price of Rs5.9822 per unit. Wind mills produced 478 GWh of electricity, accounting for 4.55% of total generation, while solar panels produced 115 GWh, which contributed 1.10% to total generation. Total energy generation reached 10,513 GWh in April 2025 as compared to 8,639 GWh in April 2024, showing an increase of 22.9% at a basket price of Rs9.9197 per unit. The total cost of energy was calculated at Rs104.288 billion. However, with the proposed previous negative adjustment of Rs11.397 billion and the sale of IPPs' electricity at negative Rs1.648 billion, the net electricity delivered to distribution companies (DISCOs) stood at 10,196 GWh at Rs8.9488 per unit with the total price of Rs91.243 billion. The electricity supply of 10,196 GWh was 21.7% higher than the net 8,375 GWh delivered in the corresponding month of 2024. In its petition, the CPPA-G argued that since the reference fuel cost was Rs7.6803 per unit for April 2025, a positive adjustment of Rs1.2685 per unit should be approved as actual fuel charges came in at Rs8.9488 per unit.
Time of India
25-04-2025
- Business
- Time of India
NMC seeks toll tax exemption for city buses, cites Rs1.27 crore annual burden
Nagpur: The Nagpur Municipal Corporation (NMC) has urged the Maharashtra State Road Development Corporation (MSRDC) to exempt its city buses from toll tax, citing a heavy financial burden of over Rs1.27 crore per year. A formal request was made to the chief engineer of MSRDC's toll administration department in Bandra, referencing a Dec 2023 govt notification that granted a similar exemption to Maharashtra State Transport (MSRTC) buses. Municipal commissioner Abhijeet Chaudhari, in a letter to the MSRDC's toll tax department, cited that the city's bus service operates within a 20-kilometre radius, covering both urban and peri-urban areas. Within this operational zone, seven toll plazas fall under the daily route of the buses. On weekdays (Monday to Friday), NMC pays around Rs37,163 per day as toll. The daily toll costs on weekends are Rs32,166 on Saturdays and Rs28,116 on Sundays. This translates to a monthly toll expenditure of approximately Rs10.58 lakh and a staggering annual amount of Rs1.27 crore. The appeal comes at a time when public criticism is mounting over the civic body's delayed response to the disruption of bus services on seven mofussil routes. Since Apr 1, over 500 Aapli Bus trips were slashed, affecting nearly 25,000 daily commuters — mainly college students. The problem arose after the National Highways Authority of India (NHAI) implemented a FASTag-only toll policy. NMC failed to equip its buses in time, leading to double toll charges and tripled operational costs. Although most students hold valid passes, they were forced to rely on costly and unsafe alternative transport. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo To address the issue, NMC is now working with the toll tax department to integrate a FASTag-based monthly pass system. On Thursday, NMC resumed partial operations with 94 buses, paying Rs5,250 per bus per day. The toll tax department has agreed to offer a flat monthly pass of Rs10.58 lakh for unlimited trips of NMC's fleet crossing the seven toll booths. However, officials explained that the toll department follows a strict monthly calendar, not a day-to-day basis. As a result, NMC has decided to fully resume operations only from May 1, to avoid paying the full monthly toll fee for just six remaining days in April. The NMC reiterated that its city buses serve as a crucial lifeline connecting Nagpur to nearby villages and settlements, offering subsidised travel for students, senior citizens, and vulnerable groups. Given the rising operational costs and public inconvenience, the civic body has sought the same toll exemption already granted to state-run MSRTC buses.
Express Tribune
19-04-2025
- Business
- Express Tribune
Cement cartel case hearing to resume soon
Listen to article The Competition Appellate Tribunal (CAT) has imposed a penalty of Rs10,000 on cement companies seeking adjournment in the hearing of a 2009 case. CAT has now fixed April 24 for hearing appeals filed by cement manufacturers against a 2009 decision by the Competition Commission of Pakistan (CCP), which imposed a cumulative fine of Rs6.35 billion on 20 cement companies for alleged price fixing and cartelisation. As the tribunal has now become functional following recent appointments, the appeal hearing filed by the cement companies has resumed. However, in a recent hearing, the senior counsel representing several manufacturers remained absent and the tribunal considered it as a deliberate attempt to delay the proceedings. The original CCP order was issued in 2009 after an investigation into suspected collusion in the cement sector revealed that the manufacturers had engaged in cartel-like behaviour by fixing prices and monitoring cement dispatches to control market supply. The evidence included a seven-month record of dispatches recovered from the premises of the All Pakistan Cement Manufacturers Association (APCMA), which pointed towards coordinated activities among the companies. The CCP imposed fines on individual companies ranging from Rs12 million to Rs1.27 billion, including Rs1.27 billion on Lucky Cement and Rs933 million on DG Khan Cement. Others included Maple Leaf Cement Rs586 million, Bestway Cement Rs562 million, Pakistan Cement Rs405 million, Attock Cement Rs374 million, Pioneer Cement Rs366 million, Dewan (merged entity) Rs345 million, Fauji Cement and Cherat Cement Rs266 million each, Askari Cement (Wah) Rs233 million, Askari Cement (Nizampur) Rs187 million, Fecto Cement Rs174 million, Kohat Cement Rs103 million, Al Abbas Rs87 million, Mustehkam Cement Rs74 million, Dandot Cement Rs42 million, Gharibwal Cement Rs39 million, Dadabhoy Cement Rs28 million and Rs12 million on Flying Cement. Following the imposition of these fines, several companies obtained stay orders from courts and some approached the Supreme Court directly. In June 2017, the apex court ruled that the matter should first be adjudicated by CAT, in accordance with the law, which requires the tribunal to decide such cases within six months.
