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Another Rs4.66 per unit hike in power bills expected next month

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  • The CPPA is representing Discos in the case.
  • NEPRA holds public hearing on CPPA petition.
  • NEPRA asks CPPA about operating plants on imported fuel.

ISLAMABAD: Electricity consumers are expected to bear an extra burden of Rs33 billion if the National Electric Power Regulatory Authority (NEPRA) approves Rs4.66 a unit proposed increase in power prices in January 2024 bills, The News reported.

The proposed price enhancement is attributed to the fuel adjustment for November 2023.

The public hearing on the Central Power Purchasing Agency (CPPA) plea was conducted by the NEPRA. The CPPA was representing Discos in the case.

NEPRA questioned the CPPA about operating power plants on imported fuel while shutting down more cost-effective plants for maintenance. Notably, the maintenance-related shutdown of the Thar coal-based plant contributed to higher electricity prices.

Moreover, a 13% decrease in electricity consumption and the utilisation of power plants running on costly imported LNG fuel in November 2023 added to the financial burden on consumers.

The NEPRA chairman stated that when demand falls below the reference level, negative growth in power generation raises costs. This leads to positive adjustments in monthly fuel charges (FCAs) and quarterly adjustments (QTAs). Due to low-capacity utilisation, capacity charges rise as consumers must cover fixed charges at all costs. In its petition, CPPA had requested previous adjustments of Rs15.9 billion (Rs2.117/unit) to be passed on to consumers in January 2024 bills.

Responding to allegations of overbilling, NEPRA asserted its track record of implementing past decisions and vowed to enforce its recent decision. The regulator issued explanations to power distribution companies (Discos) and indicated the initiation of legal actions against them. In response to a question about recent loadshedding, the CPPA stated, “Discos manage loads due to losses, hydel generation has decreased, expensive generation is occurring, and gas supply is unavailable to power plants, leading to load management. Additionally, in line with government policy, we implement 2-hour load management.”

Meanwhile, the power division in a separate statement attributed recent loadshedding on December 25th and 26th to multiple grid station failures in the Multan region and other Discos. The tripping of 132kv, 220kv, and 500kv grid stations, coupled with reduced hydel generation due to fog, created system constraints. A 1,600 MW shortfall in generation was attributed to canal closure, and a 700 MW shortage was due to limited LNG availability.

The Power Division is actively working to minimise shortfalls, using furnace oil to compensate for the LNG shortage and generate 800 MW. Loadshedding was necessary to manage system constraints and ongoing efforts are in place to stabilise the system.

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The Interior Ministry prohibits KP from using government machinery for PTI protests.

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Khyber Pakhtunkhwa is not allowed to use the resources of the Provincial Government for a party protest, according to the Interior Ministry.

On November 24, the PTI has scheduled a protest, and Chief Minister Khyber Pakhtunkhwa Ali Amin Gandapur has declared his intention to participate.

The Federal Government arrested a number of Provincial Government officials who were ordered to participate in the violent protest in Islamabad by the PTI, and confiscated vehicles used by the KP Government against the state during the previous protest in October.

However, the Jinnah Supermarket Traders Union has petitioned the Islamabad High Court to halt the PTI demonstration in the capital and deem it unlawful.

In the petition, the head of the Traders Union has asked the court to rule that the PTI protest violates fundamental human rights by preventing companies from operating and removing the public’s ability to visit stores for necessities.

The petition asked the high court to protect the capital’s workers and PTI founder from unlawful protests.

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Planning Minister: The Nation Is Back on Track for Development

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Ahsan Iqbal, the Federal Minister for Planning and Development, asserts that the country’s youth are its future and that Pakistan has made great strides over the past 77 years, becoming the sixth nuclear state in the world today.

Speaking at a ceremony in Islamabad, Federal Minister for Planning Ahsan Iqbal stated that inconsistent policies have an impact on the development process.

According to Ahsan Iqbal, the CPEC got Pakistan on its path to growth, and the government is currently moving on with phase two of the project.

The country was in danger of defaulting, but the government has put it back on course, he said.

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Bilateral Ties Between Pakistan and Belarus: President Lukashenko Will Visit Pakistan November 25–27

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President of the Republic of Belarus Prime Minister Mohammad Shahbaz Sharif has invited Aleksandr Lukashenko to make an official visit to Pakistan from November 25 to 27.

President Lukashenko will explore areas of bilateral cooperation with Prime Minister Mohammad Shehbaz Sharif during lengthy talks.

Several agreements and MoUs will also be discussed during the visit.

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