Tag: NEPRA

  • Cabinet approves Rs7.91 per unit increase in power tariff

    Cabinet approves Rs7.91 per unit increase in power tariff

    After several postponements, the Federal Cabinet finally decided to approve the Rs7.91 per unit increase in the power tariff.

    The Federal Minister of Power, Khuram Dastgir, and Minister of Petroleum, Musadik Malik, made the announcement during a press conference.

    Dastgir claimed that because Prime Minister (PM) Shehbaz Sharif wanted to provide relief to the masses. The consent was not given until 45 per cent of the population had been exempted from the tariff increase.

    Musadik Malik, the minister of petroleum, disclosed that by leaving out the protected sector, the homes with consumption of less than 200 units per month, or up to 90 million people, had been left out of the price increase.

    Previously, the government’s proposal for the tariff increase was subject to the National Electric Power Regulatory Authority’s (NEPRA) reserve decision, according to Dawn.

    In accordance with the approval, the government will raise the rate by Rs3.5 per unit starting on July 26. A similar price rise will be implemented in August. The cost would then be raised by Rs0.91 per unit in October by the government, bringing the total rise to Rs7.91.

    Malik blamed the previous administration’s lack of frequent fuel adjustments and transmission losses rebasing for the sharp increase in tariffs. Fuel surcharges were raised without notifying the public at the final rebasing, which took place in February 2021.

    The power minister informed the media that the present administration had paid Rs214 billion toward circular debt, bringing the total down from Rs2,476 billion on March 31, 2022, to Rs2,253 billion on June 30, 2022.

  • Nepra approves price increase of Rs9.66 per unit for Karachi

    Nepra approves price increase of Rs9.66 per unit for Karachi

    On account of the fuel cost adjustment (FCA) for May 2022, the National Electric Electricity Regulatory Authority (Nepra) allowed K-Electric to increase its power rate by Rs9.66 per unit on Monday.

    According to Aaj News, Nepra will make the announcement following careful consideration.

    In order to transfer the financial burden of Rs22.65 billion to consumers for May 2022, K-Electric requested an increase of Rs11.34 per unit.

    Officials from Nepra questioned K-Electric during a hearing about why it wasn’t buying less expensive electricity and offered to help K-Electric establish a connection with the provincial and federal governments for this reason.

    The power distributor also questioned K-Electric’s decision not to use the inexpensive oil it had acquired for power production.

    Nepra’s representatives responded that the company was using peak hours, which are from 6:30 PM to 10:30 PM, to provide electricity and that the cost of power is much greater at these times.

    The FCA estimate for May 2022, according to K-Electric, was based on the requested rate for the month from CPPA-G and is subject to change based on a decision to be made by Nepra.

    In its FCA adjustment request, the power utility informed the regulator that it imports from outside sources and dispatches power from its own generating units (with the available fuel resources) in accordance with economic merit orders (EMOs).

  • NEPRA announces increase of Rs7.90 per unit in power tariff

    NEPRA announces increase of Rs7.90 per unit in power tariff

    An additional increase in the price of power of Rs7.90 per unit was announced by the National Electric Power Regulatory Authority (NEPRA) on Monday.

    After hearing the Central Power Purchasing Agency’s (CCPA) argument today, the power regulatory authority made the final hike announcement, according to ARY News.

    It is worth noting that life consumers and K-Electric are protected from the tariff increase and that the amount would be paid in July’s bills.

    In response to a request from CPPAG for a raise of Rs7.96 per unit, the increase was granted under fuel adjustment costs (FAC) for the month of May 2022, according to a notification released by the power regulating authority.

    Additionally, after a substantial increase of Rs7.91 per unit, the National Electric Power Regulatory Authority has just set the power rate at Rs24.82 per unit for the fiscal year 2022–23.

    The authority approved a Rs5.27 per unit increase in electricity rates for K-electric customers on June 24.

    According to a handout provided by NEPRA, K-Electric requested an increase in the electricity rate of Rs5.25 to account for fuel adjustment charges for April.

    Earlier, The Economic Coordination Committee (ECC) of the cabinet approved an increase in power costs for K-Electric customers of 57 paisa per unit.

    However, ECC deferred making a decision on a different proposal that called for charging K-Electric customers a surcharge of Rs1.45 per unit in order to recover Rs113.1 billion in past-due amounts related to quarterly rate increases. 

  • Netizens want ‘tangas’ back on roads as petrol hits Rs209.86

    Netizens want ‘tangas’ back on roads as petrol hits Rs209.86

    To meet the International Monetary Fund’s (IMF) conditions, the government has unleashed another big gasoline bomb on the country after another hike of Rs30. In less than a month, the price of petrol has risen by Rs60 to Rs209.86.

    The latest petrol price hike came just hours after the National Electric Power Regulatory Authority (NEPRA) approved a power tariff hike of Rs7.91 per unit.

    In an attempt to save money, a large number of people rushed to nearby petrol pumps to fill up their tanks before midnight. Numerous two-wheelers, as well as sedans and full-fledged SUVs, formed long lines outside gas stations.

    Several traffic bottlenecks were observed in key areas of Lahore, Karachi and Islamabad due to long queues of automobiles.

    Netizens expressed their displeasure on social media platforms, alleging that petrol had become out of reach for the general public.

    Despite hefty price increases that would unleash a strong wave of inflation, Pakistan is still far from reaching an agreement with the IMF which requires a budget agreement for fiscal year 2022-23.

    Petrol now costs Rs209.86 per litre, high-speed diesel (HSD) costs Rs204.15, kerosene oil costs Rs181.94 and light diesel oil costs Rs178.31, thanks to the rise.

    The Finance Minister, Miftah Ismail went on to say that the government is holding talk with the IMF on a daily basis. “We cannot accede to all of their requests, but we must agree on certain aspects”.

    He insisted that the petroleum subsidy announced by former Prime Minister Imran Khan had to be rescinded to avoid financial losses.

    Journalist Kazmi Wajahat described the chaotic scene outside gas stations just before the higher rates went into effect at 12 am.

    The decision to remove the gasoline subsidy should have been made sooner, according to economists, who also warned that the worst is still to come.

    One-unit price of electricity has increased from Rs16.91 to Rs24.82 as a result of the new raise. The hike has been reported to the federal government by Nepra. According to a statement, the increased tariffs will take effect after the government issues its final notification. Recent hike in tariffs has been attributed to the rupee’s depreciation and increased oil prices on the foreign market.

  • Energy crisis worsens, electricity gap surpasses 7,000 megawatts

    Energy crisis worsens, electricity gap surpasses 7,000 megawatts

    The demand for electricity in Pakistan has risen to 28,200 megawatts due to the hot weather, while the supply is only 21,200 megawatts, resulting in a power shortfall of nearly 7,000 megawatts.

    According to well-placed sources, the country currently gets 4,635 megawatts of energy from hydropower, 1,060 megawatts from government thermal power plants, and 9,677 megawatts from IPPs. Additionally, due to a lack of oil, gas, and coal, numerous factories have been shut down.

    Several areas of the country are experiencing daily loadshedding of 10 to 12 hours due to the expanding shortfall, which is exacerbated by the hot heat.

    However, in locations with significant line losses, loadshedding lasts longer than 12 hours.

    The scheduled loadshedding technique is not being used due to the lack of data, according to the sources. In Karachi, K-Electric, the city’s sole electricity distribution provider, is imposing daily loadshedding of 9 to 10 hours.

    As per reports, the loadshedding will be resolved within the next several months.

  • Pakistan’s energy crisis worsens, resulting in ten hours of load shedding

    Pakistan’s energy crisis worsens, resulting in ten hours of load shedding

    Due to higher demand and reduced generation caused by fuel shortages, and reduced gas supplies to power plants, Pakistan is experiencing 6-10 hours of electricity load-shedding in various areas.

    As of April 25, generation was 17,976 MW, compared to demand of almost 21,000 MW, indicating a significant discrepancy between demand and generation. IPPs contributed 14,536 MW, Gencos contributed 837 MW, and Wapda hydel contributed 2,603 MW.

    LNG-powered facilities are only receiving 500 MMCFD RLNG against a demand of 690 MMCFD, forcing the system operator, the National Power Control Centre (NPCC), to run furnace oil-fired facilities, which are much more expensive to run than natural gas and RLNG. Due to a lack of gas, Nandipur is working, however, Bhikki is not operating at full capacity.

    Prime Minister (PM) Shahbaz Sharif and former Minister of Energy Hammad Azhar exchanged accusing remarks on Twitter.

    “Mian Nawaz Sharif’s government halted the worst load-shedding in five years,” the Prime Minister declared in a tweet. The PTI administration failed to procure fuel on schedule or fix power plants. As a result, present load shedding is in effect. Power generation costs the population Rs100 billion per month due to inefficient plants. “We’re working on it”.

    Former Energy Minister Hammad Azhar responded to Prime Minister, claiming that “there are only 5 power plants under repair, the most of them are in the private sector”.

    Read more: US launches $23 million project to enhance Pakistan’s power sector

    Two PML-N LNG contracts defaulted in the recent two weeks, resulting in a fuel deficit and prompt system gas diversions. This is a textbook case of poor management that could have been averted.

  • US launches $23 million project to enhance Pakistan’s power sector

    US launches $23 million project to enhance Pakistan’s power sector

    The United States (US) said on Friday that it will launch a four-year, $23.5 million initiative in Pakistan to improve energy sector performance.

    As per United States Agency for International Development (USAID) Mission Director Julie A Koenen, the project intends to boost the volume of green energy in Pakistan’s energy mix.

    The US government is collaborating with the Pakistani government to undertake a four-year $23.5 million power sector reform initiative to address climate change and enhance the amount of renewable energy in Pakistan’s energy mix, through USAID.

    It would also strengthen the management and operations of electricity transmission and distribution networks, boosting the financial viability, dependability, and affordability of Pakistan’s power system by providing technical support to the government and private sector.

    Read more: Pakistani rupee plunges by Rs1.05 against the US dollar

    To increase Pakistan’s energy supply, the US and Pakistan have built three dams: Gomal Zam dam in South Waziristan, Satpara dam in Gilgit Baltistan, and Golen Gol dam in Chitral, Khyber Pakhtunkhwa, adding 143 megawatts of electricity to the national grid and rehabilitated the Mangla and Tarbela dams and three thermal power plants, connecting up to 860 megawatts of commercially-funded wind and solar projects to the national grid.

  • Another hike of Rs4.9 per unit approved in power tariff

    Another hike of Rs4.9 per unit approved in power tariff

    Owing to the monthly Fuel Cost Adjustment (FCA) for February, the National Electric Power Regulatory Authority (NEPRA) on April 15 increased the price of electricity by Rs4.85 per unit.

    It has also announced an increase in the price of power, stating that the power output in February was more expensive than the previously set fuel price.

    According to the notice, the power distribution companies (DISCOs) will collect the amount from electricity consumers in the April bill. In addition, consumers will be hit with a charge of Rs37.7 billion, excluding general sales tax (GST). However, K-Electric and lifeline customers will be exempt from the hike.

    On March 31, the NEPRA held a hearing to determine the FCA but did not make a decision. The Central Power Purchasing Agency (CPPA) requested that the cost per unit be increased to Rs4.94 by the NEPRA.

    Following the monthly FCA, which only operates for one month, the administration had already hiked the power price to Rs5.95 per unit for the month of January.

    As per NEPRA’s data, the most expensive energy production sources, including High-Speed Diesel (HSD) and Residual Fuel Oil (RFO), were used more than average in the prior months, raising the overall cost of production.

  • Nepra approves Rs1.29 hike in cost per unit for Karachi residents

    On account of monthly Fuel Cost Adjustments (FCA), the National Electric Power Regulatory Authority (NEPRA) raised the cost per unit of power for Karachi residents by Rs1.29.

    It held a public hearing at its headquarters on Karachi Electric’s (KE) request to hike the power tariff under the FCA by Rs3.45 per unit for February. Chairman Tauseef H. Farooqi chaired the public meeting, which was also attended by officials Rafiq Ahmed Sheikh and Engineer Maqsood Anwar Khan.

    According to the officials, KE’s monthly FCA is decided at Rs1.29 per unit based on data analysis.

    The Chairman inquired about Karachi’s load-shedding status and if KE has a gas procurement deal with the Sui Southern Gas Company (SSGC) to address the fuel crisis.

    Load management is only done on feeders with a low recovery rate, according to the latter’s officials, and consumers only have to experience one to one-and-a-half hours of load shedding every day.

    Chairman Farooqui stated that KE’s technology needs to be modernised, and that there should be no load-shedding for bill-paying customers and locations where billing is timely.

    He also mentioned that the NEPRA has posted phone numbers on its website for inhabitants of the city to report any forced load-shedding by any power utility.

    According to the briefing delivered at the meeting, KE’s customers were charged Rs3.28 per unit in January under the FCA. Similarly, the FCA for February was decided to be Rs1.99 lesser than the January billing.

    Muhamad Tanveer, who is a representative of the Karachi Chamber of Commerce (KCCI), denied the FCA, citing that customers are already paying for the January hike and that the FCA should not be transferred to them.

    After reviewing the facts, the NEPRA issued a thorough judgment declaring that the FCA is only levied and set for the month in concern and that it is variable with each hearing depending on the fuel costs for that month.

  • 50 per cent refund for army officers in electricity bills

    50 per cent refund for army officers in electricity bills

    General Headquarters (GHQ) has approached National Electric Power Regulatory Authority (NEPRA) for a 50 per cent rebate to commissioned officers on electricity bills, sources told Bussiness Recorder.

    Director Works and Chief Engineer (DG&CE) said, “Military Engineering Services (MES) is giving 50 per cent refund but on the basis of energy charges instead of variable unit charges. This has curtailed the electricity bills rebate to around 3.5 per cent instead of 50 per cent to Army officers.”

    Previously, a percentage of 50 per cent refund was set for the officers on electricity units consumed. Later, an amendment was made and the bills started to come in the name of the variable and other charges, i.e., variable charges, sale rates of electricity per Kwh, which covers the unit price.

    Last year, the Ministry of Defence (MoD) had drafted a summary for the Cabinet seeking a 50 per cent rebate to commissioned officers on electricity bills and sent it to the Finance Ministry for comments. The ministry of finance then asked MoD to approach NEPRA.

    Electricity prices have been increased about 60 per cent by the government. Another increase of Rs0.95 per unit for consumers is yet to be effective from February 1.