Nepra's decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision
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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 minutes ago
- Business Recorder
Nestle Pakistan reappoints Joselito Jr. Avancena as CEO
Nestle Pakistan Limited announced on Wednesday the reappointment of Joselito Jr. Avancena as the Chief Executive Officer. This was shared by the company in a notice to the Pakistan Stock Exchange (PSX) today. Nestle Pakistan also announced the appointment of Syed Yawar Ali as Chairman of the Board. In February, Nestlé Pakistan reported its full-year results for 2024, with sales at Rs 193.2 billion, reflecting a decline of 3.7% compared to the previous year. Incorporated in Pakistan - under the repealed Companies Ordinance 1984 (now Companies Act 2017), Nestle Pakistan Limited is a subsidiary of Nestlé S.A., a Swiss-based public limited company. The company is principally engaged in manufacturing, processing and sale of dairy, nutrition, beverages and food products, including imported products.
Business Recorder
2 hours ago
- Business Recorder
Punjab to establish Citrus Parks in Sargodha, Toba Tek Singh
LAHORE: Punjab Minister for Agriculture and Livestock Syed Ashiq Hussain Kirmani on Tuesday announced establishing of two 'Citrus Park' in Sargodha and Toba Tek Singh under the ambitious Rs 1.2 billion three-year citrus revival project. The project is aimed at enhancing citrus exports and improving the value chain to meet international standards. Under this establishment of certified nurseries, new orchards will be encouraged to increase production and exports, and ultimately strengthen the national economy. He also announced linking citrus orchards with the Kisan Card programme to help orchard farmers get loans for their farming needs and employing 100 interns and 100 young professionals annually during the three year project duration. He was speaking at the third meeting of the Chief Minister Punjab Citrus Development Task Force which was held at Agriculture House, Lahore. Various proposals regarding citrus development were reviewed during the meeting. Vice Convener Citrus Development Task Force Punjab, Mohsin Shahnawaz Ranjha, and Secretary Agriculture Punjab, Iftikhar Ali Sahoo, also attended. Kirmani stated that under the vision of Chief Minister Punjab Maryam Nawaz Sharif, steps are being taken for the revival and promotion of citrus fruits in the province. Citrus, particularly kinnow, is recognized as a signature fruit of Punjab. However, due to climate change, citrus orchards are deteriorating, and plants are increasingly affected by diseases and viral infections, resulting in reduced fruit size and shorter shelf life. He stressed the need to bring private fruit nurseries under a legal framework through registration and licensing, and to connect them with diagnostic laboratories. The Minister welcomed the Bank of Punjab's initiative to introduce a loan scheme of Rs. 30 million per individual for setting up citrus nurseries, calling it a positive step for agribusiness. Copyright Business Recorder, 2025
Business Recorder
3 hours ago
- Business Recorder
Discos: JI chief condemns overbilling practices
LAHORE: Chief of Jamaat-e-Islami Hafiz Naeem-ur-Rehman, has strongly condemned the overbilling practices of power distribution companies, following the revelations in a recent audit report by the Auditor General of Pakistan. The report highlights over Rs 244 billion worth of unjustified billing imposed on the public under the guise of covering line losses and mismanagement. Commenting on the findings, Rehman said 'It is utterly shameful that the burden of Rs 244 billion is being placed on the public to cover up for inefficiencies and line losses. This is not just negligence; it is economic exploitation. The government must immediately return this amount to the people.' In a statement shared on social media platform X, the JI chief declared over billing as 'a grave form of corruption and administrative failure,' stressing that the citizens are being punished for the incompetence and mis governance of ruling authorities and related institutions. The Auditor General's report identified IESCO, LESCO, MEPCO, SEPCO, HESCO, PESCO, QESCO, and TESCO as the key culprits involved in the over billing. While the companies have reportedly claimed to have returned the amount, the audit report clarified that they failed to provide any verifiable evidence supporting their claims. Rehman reiterated his demand for full transparency and accountability, urging the government to take immediate corrective action and deliver justice to the overburdened consumers. Copyright Business Recorder, 2025
