Latest news with #Rs1.71
Express Tribune
10-05-2025
- Business
- Express Tribune
Power tariff further slashed by Rs1.8/unit
Electricity prices have been reduced by a total of Rs1.83 per unit. This reduction has been made under monthly and quarterly adjustments. According to a notification issued by the National Electric Power Regulatory Authority (Nepra) on Friday, a reduction of Rs0.28 per unit has been applied under the monthly fuel adjustment. A further reduction of Rs1.55 per unit has been made on a quarterly basis. The Rs0.28 per unit reduction will apply for the current month. The Rs1.55 per unit reduction will be effective for three monthsMay, June, and July. The Express Tribune reported on March 29 that a reduction in power tariff by up to Rs1.71 per unit for all consumers of power distribution companies (DISCOs) and K-Electric (KE) for the next three months was expected as part of a tariff relief plan. Sources said Nepra was set to allow the increase in the tariff differential subsidy (TDS) by Rs1.71 for all consumers for the months of April, May and June. They added the reduction would be part of the plan to reduce power tariff by up to Rs6 per unit. The federal cabinet in its meeting on March 26 approved the increase in the TDS for all consumers, except the lifeline domestic users, by Rs1.71 per kilowatt hour (kWh) for April-June quarter of the current fiscal year, in line with efforts to reduce consumer-end tariffs and improve demand.
Business Recorder
22-04-2025
- Business
- Business Recorder
Authorised by AGPR: CPPA-G receives Rs148.75bn from SBP on TDS account
ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) is said to have received Rs 148.75 billion from the State Bank of Pakistan (SBP) on account of Tariff Differential Subsidies (TDS) authorized by the Accountant General of Pakistan (AGPR) under different heads for the fiscal year 2024-25. On March 28, 2025, the Accountant General of Pakistan Revenue had issued authorizations to the SBP, Islamabad branch to release the authorized amounts to CPPA-G after fulfillment of all codal formalities. According to official documents, Rs 12.745 billion are related to payment of subsidy to CPPA-G on account of subsidies for Inter-Disco tariff differential for FY 2024-25, already earmarked in the federal budget 2024-25. Govt requests Nepra to reduce power tariffs by Rs1.71/unit An amount of Rs 2.281 billion has been disbursed in the account of CPPA-G on account of subsidy for merged district of Khyber Pakhtunkhwa (former-Fata) for FY 2024-25. An amount of Rs 12.123 billion has been released as subsidy to CPPA-G on account of subsidies to AJK for tariff differential for FY 2024-25. An amount of Rs 8.863 billion has been disbursed to CPPA-G on account of subsidies to AJK for tariff differential for FY 2024-25 as advance subsides duly approved by Economic Coordination Committee (ECC) of the Cabinet on June 21, 2023. The AGPR has also released Rs 399 million to CPPA-G on account of Rs subsidies for tariff differential to agri tubewells in Balochistan for FY 2024-25. And an amount of Rs 457 million has been disbursed to CPPA-G on account of subsidies for tariff differential to agri-tubewells in Balochistan. Rupees 115 billion has been disbursed in the account of CPPA-G under the head of settlement of payables to Government owned Power Plants (GPPs) for the FY 2024-25. The AGPR has also released an amount of Rs 3.007 billion to CPPA-G on account of subsidies for merged districts of KP erstwhile Fata for FY 2024-25. The funds have been made against budgetary allocation in Grant No.O33 Cost Centre/IB 9049-Subsidy for merged District of KP erstwhile Fata. Subsequent utilization of funds from this account shall be subject to fulfillment of codal formalities, rules and regulations and procedures. In addition, the AGPR has also released an amount of Rs 4 billion to be paid to the Chinese Independent Power Producers (IPPs) as per the agreement reached with the Chinese government aimed at releasing Rs 4 billion every month to the Chinese power plants. Copyright Business Recorder, 2025
Express Tribune
11-04-2025
- Business
- Express Tribune
Power division issues notification, reduces electricity prices by Rs1.71 per unit
Listen to article The Power Division has issued a notification announcing a reduction of Rs1.71 per unit in electricity prices for consumers across the country, including K-Electric. This price cut will be applicable from April to June 2025. According to the notification issued by the Power Division, the price reduction will benefit consumers nationwide, including those under K-Electric. However, the reduction will not apply to lifeline consumers. The price cut has been made possible through additional subsidies from the federal government. It is worth noting that, just a day prior, the National Electric Power Regulatory Authority (NEPRA) had approved the government's request to reduce electricity prices, including in Karachi, under the Petroleum Levy. NEPRA has sanctioned a price reduction of Rs1.71 per unit, and the decision has been forwarded to the federal government for implementation. This price reduction comes after a previous adjustment in electricity tariffs, where a Rs1.90 per unit reduction was applied to the quarterly adjustments for consumers across the country, including in Karachi. Earlier, Prime Minister Shehbaz Sharif had announced a reduction of Rs7.41 per unit for residential consumers on April 3, bringing the price of electricity for domestic users down to Rs 38.37 per unit. Additionally, a reduction of Rs7.59 per unit was announced for industrial consumers, lowering their electricity price to Rs40.60 per unit.
Express Tribune
10-04-2025
- Business
- Express Tribune
Government announces reduction in electricity tariffs across country
Listen to article Pakistan's power regulator has approved a Rs1.71 per unit reduction in electricity prices across the country, including Karachi, under the head of petroleum levy relief, officials said on Thursday. The National Electric Power Regulatory Authority (NEPRA) approved a federal government proposal to lower electricity tariffs and has forwarded its decision to the federal authorities for implementation. The price cut will apply for the April to June 2025 quarter and will benefit consumers nationwide, including those served by K-Electric. However, the relief will not be extended to lifeline consumers, NEPRA said in a statement. The federal government had submitted a request for the tariff reduction last month, following its move to increase petroleum levy on petrol and high-speed diesel by Rs10 per litre. The government said the power tariff cut was aimed at passing on relief to consumers from the additional revenue generated through fuel levies. NEPRA held a hearing on the proposal on April 4 and subsequently approved the price reduction. Previously, electricity tariffs were reduced by Rs1.90 per unit under quarterly adjustments for consumers across Pakistan, including Karachi. Earlier this month, Prime Minister Shehbaz Sharif also announced a significant electricity tariff reduction for domestic users, up to Rs7.41 per unit, bringing the average rate down to Rs38.37 per unit. For industrial users, a Rs7.59 per unit cut was announced, reducing the average tariff to Rs40.60 per unit.
Express Tribune
05-04-2025
- Business
- Express Tribune
Oil consumers to fund tariff cut
Listen to article Oil consumers are set to mainly fund the recent reduction in electricity tariffs up to 17% under the prime minister's relief package. The National Electric Power Regulatory Authority (Nepra) on Friday held a public hearing to consider the government's request for a tariff reduction of Rs1.71 per unit for consumers across Pakistan, including Karachi. It was informed that total subsidy had been increased to Rs266 billion after adding Rs58.6 billion worth of petroleum development levy (PDL). Currently, the government is providing Rs266 billion in tariff differential subsidy to bridge the gap between actual and notified tariffs, which could rise to Rs324 billion with the latest tariff proposal. The government has recently increased PDL from Rs60 to Rs70 per litre on petrol and diesel each but it announced that its impact would be redirected to electricity consumers. Now, it is believed that oil consumers will provide Rs58 billion in additional PDL to cross-subsidise the electricity consumers. At the hearing, Nepra directed the Power Division to clear the confusion among consumers, especially the industrial sector. While hearing a government petition for the tariff reduction of Rs1.71 per unit on account of additional PDL of Rs58.6 billion for three months, Nepra chairman stated that work was underway to firm up the prime minister's announcement of a power tariff cut of Rs7.69 per unit for industrial consumers and Rs7.41 per unit for domestic consumers, excluding lifeline users. He added that consumers would receive an immediate relief of Rs5.03 per unit within the next few days, while the remaining relief would be provided in the quarterly tariff adjustment (QTA) for the third quarter. Industrialist Aamir Sheikh acknowledged the tariff reduction but pointed out that there was a discrepancy as Nepra chairman cited a relief of Rs5 per unit whereas the Power Division indicated a reduction of Rs6. The breakdown of QTA relief includes Rs1.9 per unit under the tariff differential subsidy, Rs1.71 under QTA and Rs1.36 under the fuel price adjustment (comprising Rs0.46 and Rs0.90 per unit). "I hope Nepra will clarify whether the relief from the upcoming QTA will be given to consumers in the current quarter (April-June), meaning two QTA simultaneously, or it will be finalised now but will be implemented in the July-September quarter," he said. "If the next QTA is granted in this quarter and is around minus Rs1 per unit, this clarification would allow us to estimate a net relief of around Rs4 per unit and plan export sales accordingly," he added. Arif Bilwani and Tanveer Barry also sought clarifications on several points raised during the public hearing. The proposed decrease in tariff is required to be implemented through an increase in the tariff differential subsidy, with the government already securing cabinet's approval before submitting the request to Nepra. The relief will be applicable to all power distribution companies, including K-Electric (KE), for three months. However, officials clarified that lifeline consumers would not enjoy the benefit. According to Power Division officials, the government aims to offset the cost through estimated savings of Rs58 billion by keeping petroleum prices stable over the next three months. Additional relief is being provided through revisions in power purchase agreements as savings of Rs12 billion following negotiations with independent power producers (IPPs) had already been included in the recent QTA. The government is also negotiating with banks to cope with the circular debt. These talks are part of a broader strategy to finalise an arrangement that could slash liabilities in the power sector. Officials clarified that the relief to consumers was being provided through quarterly adjustments instead of annual rebasing because of the current economic conditions. Nepra officials confirmed that a relief of Rs1.36 per unit had already been granted under the fuel charges adjustment and with the proposed reduction of Rs1.71, consumers could receive an immediate cumulative relief of Rs5.03 to Rs5.04 per unit. The authority will review the submitted data and issue a formal decision. Power Division officials emphasised that the continuation of relief measures would depend on macroeconomic stability, noting that the current financial situation did not allow for annual tariff rebasing, which was why quarterly adjustments were being used. The third quarterly adjustment request is expected to be submitted in the second week of April. During the hearing, concerns were raised about the burden being placed on grid-connected consumers due to increasing net-metering connections, translating into a tariff hike of Rs1.5 per kilowatt-hour (kWh). In response, Nepra officials stated that the government was actively deliberating on the issue and was expected to announce a decision soon. They added that adjustments may also be introduced during the upcoming tariff rebasing to ensure fairness while protecting grid consumers. Rs3.02 relief for KE consumers Separately, Nepra issued its decision on KE's petition for the provisional fuel charges adjustment for January 2025, indicating a relief of Rs3.02 per kWh. This will be passed on to consumers in April 2025 bills. Nepra provisionally retained Rs2 billion in respect of adjustments on account of partial load, open cycle and degradation curves along with start-up cost pursuant to its decision regarding generation tariff for the period July 2023 onwards from the fuel charges adjustment for January 2025. It would be adjusted against pending KE claims to ensure that consumers are not burdened at a later stage.
