Latest news with #CPPA-G
Business Recorder
11 hours ago
- Business
- Business Recorder
Power sector's circular debt hits Rs1.6trn mark: CPPA-G
ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) revealed that the power sector's circular debt stood at Rs1.6 trillion as of June 30, 2025, excluding the financial impact of recovery shortfalls and distribution losses. This disclosure came just a day after the Power Division informed the Prime Minister during a Cabinet Committee on Energy (CCoE) meeting that circular debt had been recorded at Rs780 billion as of the same date. The higher figure was shared by CPPA-G CEO Rihan Akhtar in response to a query by NEPRA Chairman Waseem Mukhtar. When asked if the financial impact of low recoveries and distribution losses was included in the figure, the CPPA-G CEO clarified that it was not. Rs1.275trn loan to tackle circular debt: CPPA-G likely to sign term sheets with 18 banks The NEPRA Chairman then directed CPPA-G to provide the complete information to the regulator in time for a public hearing on Quarterly Tariff Adjustment (QTA) scheduled for next week. The public hearing was chaired in person by Members Amina Ahmed (Law) and Maqsood Anwar Khan, while the Chairman Mukhtar and Member (Technical) joined via Zoom. During the hearing, the CPPA-G CEO presented electricity generation data for June 2025 and requested a negative Fuel Charges Adjustment (FCA) of 65 paisa/kWh, compared to the current 50 paisa/kWh. This would result in a net tariff reduction of 15 paisa/kWh across the country. However, the adjustment will not apply to K-Electric (KE) consumers, as the Cabinet Division has not issued directives to NEPRA in this regard. KE has sought Rs4.75/kWh as FCA for May 2025, but the Authority has yet to decide. When asked by a journalist whether the June FCA for distribution companies (Discos) would apply to KE consumers, Member (Law) Amina Ahmed responded that NEPRA had not received any such instructions from the federal government. Currently, KE continues to file FCA requests based on its provisional tariff. She added that since KE's final seven-year tariff has now been notified, NEPRA has directed KE to file revised FCA requests using the final approved rates. A representative of the National Power Control Centre (NPCC), now known as ISMO, reported that total electricity generation in fiscal year 2024–25 remained below reference generation levels due to reduced demand. The peak generation during the year was 24,499 MW on June 26, 2025. The hearing also saw sharp criticism from industry representatives from Lahore and Karachi over high electricity tariffs. Aamir Sheikh, a consumer from the textile sector, pointed out that while the Prime Minister had announced Rs7.5/kWh relief, NEPRA had reduced it to only Rs2.5/kWh. He also raised concerns about the rising cost of bagasse-based power, which now nearly matches coal costs, suggesting a potential scandal. He recommended removing the fertilizer subsidy from RLNG prices to help lower electricity rates. Industry stakeholders reiterated their demand that, as announced by the Power Minister, electricity duty should not be applied to bills from July onward. They also requested that furnace oil be excluded from power generation due to the Rs82,000/ton levy imposed. Further, they demanded that the Rs1.71/unit reduction, based on an additional Petroleum Levy (PL) of Rs10/litre, be continued as its collection is still ongoing. 'It was supposed to continue for the entire year,' Sheikh emphasized, adding that gas levies were also intended for reducing electricity rates, but no such adjustments have been made yet. Rehan Jawed from Karachi highlighted the declining grid electricity demand due to the rapid spread of solar energy, particularly in high-loss areas. He argued that solar is reducing distribution losses and improving revenue collection. 'The real winners are solar panels,' he said. 'They're displacing expensive fossil fuel-based generation and improving overall system efficiency.' ArifBilwani, another participant from Karachi, voiced serious concerns over the increasing rates of bagasse-fired power plants, urging NEPRA to review the pricing. A representative from the Cold Storage Warehousing sector criticized NEPRA for failing to decide on their review petition pending since May 22, 2025. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Business
- Express Tribune
Power consumers to get Rs53b refund
Listen to article The government is set to pass on Rs53.4 billion worth of refunds to electricity consumers across the country, including those of K-Electric, under quarterly tariff adjustment for the fourth quarter (April-June) of fiscal year 2024-25. The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on August 4 on a petition filed by the Central Power Purchasing Agency-Guarantee (CPPA-G), which is seeking a downward adjustment mainly because of lower capacity payments following negotiated settlements with independent and government power producers. According to CPPA-G data, the biggest reductions are proposed for Faisalabad Electric Supply Company (Rs15.579 billion), Lahore Electric Supply Company (Rs12.758 billion) and Multan Electric Power Company (Rs8.467 billion). Other companies that want to release refunds for their clients are Gujranwala Electric Power Company (Rs6.132 billion), Islamabad Electric Supply Company (Rs1.04 billion), Peshawar Electric Supply Company (Rs2.7 billion), Hyderabad Electric Supply Company (Rs6.818 billion), Sukkur Electric Power Company (Rs504 million) and Tribal Areas Electric Supply Company (Rs2.985 billion). However, Quetta Electric Supply Company wants to recover Rs3.594 billion from its consumers. The total requested amount for variable operation and maintenance (O&M) cost is Rs182 million, use of system charges and market operator fee are estimated at Rs804 million and the impact of incremental units is calculated at negative Rs662 million. Under the federal policy guidelines that ensure the application of uniform power tariffs across the country, Nepra said that the approved relief would also be extended to K-Electric consumers. Earlier this month, in a bold assertion of its regulatory autonomy, Pakistan's power-sector watchdog notified K-Electric's long-delayed multi-year tariffs for supply, distribution and transmission through 2030, which came despite an unresolved review motion filed by the federal government. The regulator notified an increase of Rs6.15 per unit in base tariff for K-Electric consumers. The government implements a uniform tariff across the country, for which it provides subsidy for K-Electric consumers. Nepra moved ahead with the notification after determining that no legal bar existed to halt its implementation. It invoked its enhanced powers under a 2021 legal amendment, which allows the regulator to issue tariff notifications directly – the authority that previously rested with the federal government. The move reflects pressure from international lenders, notably the International Monetary Fund (IMF) and the World Bank, to depoliticise tariff setting and fast-track power sector reforms. "This situation could impair K-Electric's financial health and undermine power supply continuity, ultimately affecting consumers and the broader energy market," Nepra said in its statement. The newly notified average power supply tariff for K-Electric is Rs39.97 per kilowatt-hour (kWh) for 2023-24, comprising Rs31.96/kWh in power purchase cost, Rs2.86 for transmission, Rs3.31 for distribution and Rs2.28 in supply margin. A prior year adjustment of minus Rs0.44/kWh has also been included. Nepra estimated the company's total revenue requirement for financial year 2023-24 at Rs606.9 billion, with Rs34.7 billion allocated for supply margin and Rs36.2 billion set aside to cover recovery losses.
Business Recorder
24-07-2025
- Business
- Business Recorder
Discos' June FCA: FPCCI flags objections and regulatory queries
ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised formal objections and regulatory queries on FCA of Discos for June 2025. In a letter to Registrar, Nepra, FPPCI said that while the proposed negative adjustment of Rs. 0.6541/kWh may appear consumer-friendly but it grossly under-represents the hidden inefficiencies, persistent opacity, and regulatory shortcomings plaguing the power sector. According to the FPCCI, the actual negative FCA, if inefficiencies were removed, would justifiably fall between Rs2.50/kWh to Rs3.00/kWh. Nepra's own Member (Technical) has consistently flagged major concerns across multiple FCA hearings. Drawing from these issues and recent disclosures-including the Rs. 244 billion overbilling scandal, system losses exceeding Rs. 267 billion, and long-standing unresolved outages- FPCCI has requested that NEPRA, while rejecting the current FCA proposal, seek direct and time-bound explanations from CPPA-G and the Power Division on the following points: (i) when will CPPA-G, ISMO, and NTDC be mandated to submit detailed, verifiable deviation and constraint logs before each FCA hearing, as required under principles of transparency? (ii) Why are completion timelines for key infrastructure-such as the Lahore North Grid, SCADAIII, and restoration of HVDC transmission-still unpublished despite repeated cost impacts due to underutilization and system constraints? (iii) What efforts have been made to resolve the Guddu ST-16 (747 MW) outage persisting since July 2022, and the Neelum-Jhelum Hydropower Plant (969 MW) shutdown since May 2024? What is the current status and who is accountable for the resulting losses exceeding Rs 150 billion? (iv) Why generic ISMO certificates are still being accepted as evidence during FCA hearings, especially when ISMO is not fully operational? Will Nepra now require these to be supported by publicly auditable dispatch data? (v) How does Nepra reconcile system losses at 17.55%-far above the allowed 11.43%-with recovery claims of 96.6%, especially when SEPCO and QESCO report recovery levels of only 25.8% and 38.7% respectively? Has Nepra verified the raw meter data? (vi) What enforcement action has Nepra taken against DISCOs involved in the 2024 and 2025 overbilling scandals? Why is there no public disclosure of disciplinary outcomes? (vii) Why were costly fuels like RLNG (Rs. 21.87/kWh) dispatched in June 2025 despite zero dispatch from HSD and large availability of hydel? Has Nepra reviewed the validity of PLAC claims made under such suboptimal dispatch? Why are Nepra's statutory obligations under Article 19A of the Constitution and Section 7(2)(f) of the NEPRA Act—to ensure public access to data-not being enforced rigorously? (ix) Why have the Service Level Agreements (SLAs) of K-Electric's plants been made publicly available for comments, while the Power Purchase Agreements (PPAs) signed by CPPA-G which underpin uniform national tariffs-have never been published for public scrutiny. The FPCCI also asked why the Service Level Agreements (SLAs) of K-Electric's plants are made publicly available for comments, while the actual Power Purchase Agreements (PPAs) signed by CPPA on which the entire nation's consumers are charged under the uniform tariff-are never subjected to public scrutiny? 'Is transparency only reserved for Karachi, or do the rest of the country's power contracts not deserve the same accountability?' FPCCI questioned. The association argues that power sector cannot be allowed to continue this selective opacity, systemic overbilling, and absence of accountability while the public pays for inefficiencies it did not cause. 'We urge Nepra to use this FCA proceeding to assert its independence, enforce disclosure, and direct corrective action through binding regulatory orders,' said the FPCCI. The Nepra will hold a public hearing on July 30, 2025 to be attended by the public and private sector. Copyright Business Recorder, 2025
Express Tribune
19-07-2025
- Business
- Express Tribune
NEPRA likely to cut power tariff by Rs0.65/unit for June
Listen to article Consumers are likely to receive relief in their electricity bills through a fuel charges adjustment for June 2025. This is due to a drop in energy prices used for power generation. NEPRA may reduce the power tariff by Rs0.6541 per kWh under the monthly FCA. It has scheduled a public hearing on July 30, 2025, regarding the proposed FCA for XWDISCOs. According to the CPPA-G, NEPRA has been requested to approve a reduction of Rs0.6541/kWh in fuel charges. The reference fuel cost was Rs8.3341/kWh, but actual costs came in lower due to cheaper fuel inputs. In June 2025, 13,744 GWh of electricity was generated. Hydropower led the mix with a 39.36% share, followed by RLNG (16.12%), local coal (10.99%), imported coal (10.16%), and nuclear (10.06%). The highest-cost power source remained imports from Iran at Rs22.5155/kWh. After transmission losses of 2.97% and adjustments, 13,310 GWh were delivered to DISCOs at an average cost of Rs7.6800/kWh.
Business Recorder
19-07-2025
- Business
- Business Recorder
June FCA: CPPA-G seeks 65 paisa negative adjustment
ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought negative adjustment of paisa 65 per unit in FCA for June 2025 to refund Rs 8.7 billion for consumers across the board. The Nepra is scheduled to hold a public hearing on July 30, 2025 to seek further explanation from CPPA-G and give opportunity to consumers' representatives to express their views on FCA adjustment data. According to data submitted to Nepra, in June 2025 hydel generation was recorded at 5,410 GWh - 39.36 percent of percent total generation. PD blocks Rs4.69/unit FCA relief Power generation from local coal-fired power plants was 1,510 GWh in June 2025 which was 10.99 per cent percent of total generation at a price of Rs 1.5121 per unit whereas 1,597 GWh was generated from imported coal at Rs 15.1600 per unit (percent). Generation from HSD whereas 151 GWh were produced on RFO at a rate of 28.8873 per unit. Electricity generation from gas-based power plants was 968 GWh (7.04 percent) at Rs12.3883 per unit. Generation from RLNG was 2,216 GWh (16.12 percent of total generation) at Rs 21.8716 per unit. Electricity generation from nuclear sources was 1,383 GWh at Rs 2.4488 per unit (10.06 percent of total generation), and electricity imported from Iran was 47 GWh at Rs 22.5153 per unit. Power generation from baggasse recorded at 35 GWh at a price calculated at Rs 9.8651 per unit. Generation from solar was recorded at 106 GWh which constituted 0.77 per cent of total generation. Energy generation from wind was recorded at 522 GWh (3.80 per cent) of total generation. According to the CPPA-G, energy generated in June 2025 stood at 13,744 GWh at a total price of Rs 108.166 billion which was Rs 7.8698 per unit. However, after inclusion of Rs 4.832 billion of previous negative adjustments and Rs 1.113 billion negative adjustment as sale to IPPs and transmission losses of negative 409 GWh (- Rs 2.97 per unit, the net delivered to Discos was recorded at 13,310 GWh at a rate of Rs 7.6800 per unit. The CPPA-G argued that since the generation cost in June 2025 was recorded at 7.6800/kWh against the reference rate of Rs 8.334/kWh, hence a negative adjustment of Rs 0.6541/kWh for all categories of consumers should be approved. Copyright Business Recorder, 2025
