Latest news with #MYT


Business Recorder
15 hours ago
- Business
- Business Recorder
Nepra issues pending notifications for KE tariffs
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued pending notifications for K-Electric's (KE) supply, distribution, and transmission tariffs for the period 2023–24 to 2029–30 under the Multi-Year Tariff (MYT) regime, stating that the federal government's pending review motion does not legally restrain the regulator from notifying its earlier determinations. Previously, the federal government was responsible for issuing tariff notifications. However, amid prolonged delays and under pressure from the International Monetary Fund (IMF) and the World Bank, the law was amended in 2021, granting NEPRA the authority to notify tariffs directly. 'It is now the duty of the Authority to issue the requisite notifications of its determinations if the government fails to do so or if any reconsideration request remains pending,' official sources said. Under Rule 31 of the NEPRA Act, the Authority can issue such notifications if the federal government does not act within the specified time. DISCOs and KE: Nepra approves revised average uniform SoT Although the government's review motion is still under consideration, NEPRA clarified that if it revises its previous determinations, the tariffs will be amended accordingly. In a related development, Deputy Prime Minister and Foreign Minister Ishaq Dar recently chaired a high-level, confidential meeting to discuss KE's ownership issues involving Al-Jomaih, following a strongly worded letter from Pakistan's Ambassador to Saudi Arabia. KE's average power supply tariff has been fixed Rs 39.97 / kWh which includes power purchase excluding transmission cost of Rs 31.96 per unit, transmission cost of Rs 2.86 per unit, distribution cost Rs 3.31 per unit, supply margin Rs 2.28 per unit and Prior Year Adjustment negative Rs 0.44 per unit. The power utility company's total revenue requirement is estimated to be Rs 606.920 billion, for FY 2023-24, of which supply margin will be Rs 34.681 billion, O&M cost Rs 5.91 billion, working capital negative Rs 1.244 billion, recovery loss, Rs 36.253 billion, gross margin Rs 40.921 billion, other income negative Rs 6.240 billion, net margin Rs 34.681 billion and prior year adjustment negative Rs 6.690 billion. The Authority also considering the fact that FY 2023-24 has already lapsed and FY 2024-25 is almost 11 months gone, also obtained ICE's actual recovery ratios for the FY 2023-24 and FY 2024-25. As submitted by KE its actual recovery for the FY 2023-24 remained at 91.50%, whereas FY 2024-25 is expected to close at 90.50%. The financial impact of under recovery of 8.50% for FY 2023-24 and 9.50% for FY 2024-25, as reported by KE, is around Rs.40 billion and Rs.57 billion respectively. The Authority noted that return allowed to KE for its distribution function is around Rs.21.6 billion, meaning thereby that effectively KE would be incurring losses for the first 02 years of MYT, if no recovery loss is allowed to KE. This may compromise the financial viability of the company, which is neither in the interest of the consumers nor power system as whole. In another notification NEPRA has approved distribution tariff of Rs 3.31/ kWh and Rs 2.684 / kWh for investment of Rs 43.447 billion during the validity of MYT. Copyright Business Recorder, 2025


Business Recorder
5 days ago
- Business
- Business Recorder
Consensus on Discos' sell-off: Working group formed for FA-stakeholder coordination
ISLAMABAD: The government has constituted a working group intended to coordinate with relevant stakeholders and the Financial Advisors to achieve consensus on the privatisation process of power Distribution Companies (Discos), well informed sources told Business Recorder. In the first phase, the government is fast-tracking efforts to privatise three Discos— Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) — with the goal of completing the process by the end of calendar year 2025. Financial Advisors, Alvarez & Marsal Middle East, has given the sectoral due diligence report. The Working Group comprised of Abdul Basit Abbasi, Consultant, Privatisation Commission – (Convener), Sajid Akram, Director General, NEPRA, Umer Haroon, Independent System and Market Operator (ISMO), Umair, Senior Manager, CPPA-G, Salman Rehman, Director, NEPRA, Abdul Moiz Khawaja, Additional Joint Director SECP, Consultant, Power Division, nominee, Power Planning and Monitoring Company, nominee, CPPA-G, nominee, NEPRA DISCO's team and nominees, Financial Advisor. Discos' sell off: 'Turkish model' under consideration The Working Group will hold its first meeting on July 26, 2025 in the Ministry of Privatisation. According to the Terms of Reference (ToRs), Working Group in furtherance of section 5(f), 5(g), and 5(t) of the Privatisation Commission Ordinance, 2000, the Chairman of the Privatisation Commission, is pleased to constitute a Working Group (WG) to address and resolve key issues identified in the Financial Advisor's Sector Due Diligence (DD) report concerning government-owned Power Distribution Companies whereby the regulatory framework in which privatization will proceed will be studied to form the basis of policy, regulatory and/or administrative decisions required to be taken by the Federal Government before privatization. The Working Group will coordinate with relevant stakeholders and the Financial Advisor to achieve consensus and provide recommendations on the following matters:(i) Bifurcation of Retail and Wire Business - recommendations with respect to bifurcation of retail and wire business and ancillary regulatory matters, such as licensing, dispatch and settlement processes, optimum tariff and subsidy regimes etc; (b) examination of legal and technical issues concerning housing societies and industrial zones, and their corresponding impact on the valuation and operations of DISCOs; (c) NEPRA's deliberation to unbundle Distribution and Supply businesses; and (d) any other relevant and related matter. Uniform Tariff and Industrial Cross-Subsidy Framework: Evaluation of the impact of the uniform tariff and existing cross-subsidies on DISCO valuation and recommendations for way forward. Review of the Multi-Year Tariff (MYT) Framework will include (a) assessment of whether the current MYT and associated indexation mechanisms require revision, based on Financial Adviser's feedback; and (b) MYT revision window at the time of the transaction. Supplier of Last Resort (SoLR) Licencing: (a) analysis of the merits and demerits of issuing competitive supplier licenses to the SOLR from the perspective of potential investors; and (b) CTBCM status and future evolvement plans, possible future business combinations and changes to DISCOs business perimeter over time (Distribution/SOLR/CS). Review of transition from current wholesale market to retail market trading: total quantum of power to be allocated to the wholesale market over the next five years and a clear roadmap for transition, review the details w.r.t. annual allocation and mechanism of award, including criteria, bidding processes (if any), and regulatory approvals. Mechanism to ensure investment and efficiency improvement post privatisation: (a) determine commitments to be required from prospective investors - particularly investment in infrastructure and efficiency enhancement; to align with and support the Government's privatization objectives and proposed transition in power market structures ; and (b) propose a mechanism to ensure that post-privatization, the required investments, efficiency gains, and service delivery improvements are effectively achieved. This should include considerations for enforceability, regulatory oversight, investor confidence, and balanced risk allocation. Copyright Business Recorder, 2025


Time Out
10-07-2025
- Business
- Time Out
‘The Diary of a CEO' host Steven Bartlett announces Asia speaking tour for September 2025
This one's for the aspiring entrepreneurs, business leaders, and curious minds. Steven Bartlett, the highly influential host of the popular podcast 'The Diary of a CEO', will be touring Asia for the first time ever. Steven is a guy you want to get entrepreneurship advice from, for sure. Raised in Botswana, he founded two companies by the age of 22 – one being Social Chain, a social media marketing agency that achieved significant success with clients such as Apple, KFC, and McDonald's. These ventures made him a millionaire by the tender age of 23. Most prominently, he's the host of 'The Diary of a CEO', an ongoing podcast where he picks the brains of celebrities and business leaders such as Sir Richard Branson, Michelle Obama and Simon Cowell. Intimate, entertaining, and always insightful, the podcast has garnered over 40 million monthly downloads and 1 billion streams. These nuggets of wisdom have been conveniently condensed into his second book, the Sunday Times bestseller 'The Diary of a CEO: The 33 Laws for Business & Life'. Steven has fingers in almost every pie, with more businesses founded in the media, software, and finance spaces, and key investments in the health and wellness industries. He is also empowering the next generation of entrepreneurs through action and advocacy, with a focus on uplifting individuals from BAME and underprivileged backgrounds. Inspired yet? Well, you can catch him in September 2025, when he travels to Singapore, Kuala Lumpur, Hong Kong, Bali, and Jakarta for his The Business and Life Speaking Tour. There's potential for these shows to be seriously life-changing: Steven will share a practical roadmap to success as an entrepreneur, drawing from science-backed research, personal experience, and lessons learned from his many interviews with successful global figures. You can expect actionable steps to transform your mindset, build sustainable ventures, cultivate leadership qualities, and develop strategies for lasting personal growth and success. Read on for all the details related to Steven Bartlett's upcoming Asia tour, including dates, venues, and ticketing prices. Steven Bartlett The Business and Life Speaking Tour 2025 Asia dates and venues: Sep 19: Singapore – Star Theatre Sep 21: Kuala Lumpur, Malaysia – CCEC (Nexus) Sep 23: Hong Kong – Asia World Expo Sep 26: Bali, Indonesia – Westin Nusa Dua Sep 27: Jakarta, Indonesia – Kasablanka Hall How to get tickets to Steven Bartlett's Asia tour? Tickets are available at Here are priority access and general sales times: Priority access registration: July 10, noon - July 14, noon SGT/HKT/MYT/WITA July 10, 11am - July 14, 11am WIB Priority access for those who registered on: July 16, noon SGT/HKT/MYT/WITA July 16, 4am WIB General ticket sales start on: July 17, noon SGT/HKT/MYT/WITA July 17, 11am WIB How much do tickets for Steven Bartlett's Asia tour cost? Singapore: from S$98 Kuala Lumpur: from MYR 280 Hong Kong: from HKD 480 Bali: from IDR 990,000 Jakarta: from IDR 790,000


Business Recorder
25-06-2025
- Business
- Business Recorder
MYT mechanism: Nepra lowers average tariff to Rs34 for Discos
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has reduced national average tariff by 4.2 percent to Rs 34 per unit from Rs 35.50 per unit of 2024-25 for power Distribution Companies (Discos) for FY 2025-26 under Multi-Year Tariff (MYT) mechanism to be applicable from July 1, 2025. The Regulator has determined separate tariffs for the Discos based on their approved revenue requirements, which also includes Power Purchase Price (PPP). However, it is unclear if the Discos or GoP will approach the Regulator for review of determinations. NEPRA approves K-Electric's MYT for supply segment The determined average tariffs of different Discos are as follows: (i) Islamabad Electric Supply Company (IESCO)- average tariff Rs 29.28/kWh, revenue requirement, Rs 340.523 billion, PPP tariff, Rs 23.9851/kWh, total PPP amount Rs 300.896 billion;(ii) Gujranwala Electric Power Company (GEPCO), average tariff Rs 33.82/kWh, revenue requirement, Rs 380.412 billion, PPP tariff Rs 29.9231/kWh, total PPP amount Rs 319.942 billion;(iii) Faisalabad Electric Supply Company (FESCO), average tariff Rs 32.69/kWh, revenue requirement Rs 471. 717 billion, PPP tariff 26.0226/ kWh, total PPP amount Rs 408.406 billion; (iv) Lahore Electric Supply Company (LESCO) average tariff Rs 31.18/kWh, revenue requirement Rs 737.216 billion, PPP tariff Rs 25.1463/kWh, total PPP amount Rs 650.996 billion; (v) Multan Electric Power Company (MEPCO), average Rs 34.68/kWh, revenue requirement, Rs 595.696 billion, PPP tariff Rs 26.5094/kWh, total PPP amount Rs 513.580 billion; (vi) Peshawar Electric Supply Company (PESCO), average tariff Rs 37.20/kWh, revenue requirement, Rs 342.268 billion, PPP tariff Rs 26.1682/kWh, total PPP amount Rs 298.213 billion; (vii) Quetta Electric Supply Company (QESCO), average tariff Rs 41.54/kWh, revenue requirement, Rs 201.644 billion, PPP tariff Rs 29.8509/kWh, total PPP amount Rs 168.115 billion: (viii) Sukkur Electric Supply Company (SEPCO), average tariff Rs 35.63/kWh, total revenue requirement, Rs 120.739 billion, PPP tariff Rs 27.213/kWh, total PPP amount Rs 110.213 billion; (ix) Hyderabad Electric Supply Company (HESCO), average tariff Rs 44.36/kWh, revenue requirement, Rs 173.408 billion, PPP tariff Rs 32.6312/kWh, total PPP amount Rs 173.408 billion; (x) Tribal Areas Electric Supply Company (TESCO), average tariff, Rs 44.93/kWh, revenue requirement, Rs 61.391 billion, PPP tariff Rs 39.3703/kWh, total PPP amount Rs 59.045 billion ; and (xi) Hazara Electric Supply Company (HAZECO) average tariff, Rs 33.49/kWh, revenue requirement, Rs 74.532 billion, PPP tariff Rs 24.0776/kWh, total PPP amount Rs 63.340 billion. NEPRA has projected a modest 2.8% growth in electricity demand for the fiscal year 2025-26, significantly lower than the 5% forecast made by the Central Power Purchasing Agency-Guaranteed (CPPA-G). This projection is based on recent trends of stagnant or declining demand, as actual generation data for the last two fiscal years showed either negative or flat growth. In its latest determination, NEPRA approved a projected average Power Purchase Price (PPP) of Rs 25.06 per unit for FY 2025-26. This estimate is based on several macroeconomic assumptions, including an exchange rate of Rs 290/USD, low hydrology, US inflation at 2%, KIBOR at 11%, and Pakistan's inflation at 8.65%. Nepra acknowledged that although CPPA-G initially based its forecast on an exchange rate of Rs 280/USD, the Federal Government's budgetary estimates and prevailing market conditions justify the use of Rs 290/USD. As the majority of power generation costs are dollar-indexed, exchange rate fluctuations have a direct impact on electricity prices. The Authority, in its determination observed that during hearing various stakeholders highlighted that exchange rate of Rs.280/USB may not be realistic and may result in positive periodic adjustments as the prevailing exchange rate is already higher. It was also highlighted by one of the commentators that Federal Government in budgetary estimates has considered exchange rate of Rs.290/USD. The Authority also noted that 3 month KIBOR as of June 2025 has remained lower as compared to the projections of CPPA-G and may reduce further going forward. In view thereof, the Authority directed CPPA-G to also submit a PPP forecast scenario, by taking into account exchange rate of Rs.290/USD and KIBOR @ 11%, with following other assumptions; CPPA-G in its Report has projected growth under two scenarios, ie, normal 2.8% and high 5%, however, actual demand during last two years either decreased or remained stagnant. For FY 2023-24, the overall generation is reduced by around 1.79% as compared to FY 2022-23 and for FY 2024-25 (May & June 2025 projected), total generation is expected to remain almost at the same level as of FY 2023-24. To analyse the projections made by CPPA-G, the actual generation data from July 2024 to April 2025 has been considered. The actual generation from the Grid remained at 100,660 GWhs, from July 2024 to April 2025, lower by 5.40% from the reference generation assumed in PPP projections for the FY 2024-25. This reduction of 5.40%, when applied to the projected generation for May and June 2025, results in total generation of around 125,930 GWHs from the Grid. After accounting for the increased supply to KE from national Grid in FY 2025-26, and by applying the growth rate of 2.8%, as proposed by CPPA-G in one of its growth scenarios, the projected generation works out as 132,247 GWh, which when adjusted with Transmission losses, results in demand of 128,544 GWhs at 132 KV. CPPA-G in its Report has also projected similar demand at 132 kV, however, reliance was placed on the anticipated shift of captive consumers to National grid and improved economic situation. The improved economic situation, although may lead to additional electricity consumption, however, keeping in view increasing penetration by DGs and past trends, the Authority considered demand growth of 5%, assumed by CPPA-G as ambitious, and unlikely to happen. Copyright Business Recorder, 2025


Business Recorder
24-06-2025
- Business
- Business Recorder
PD blocks Rs4.69/unit FCA relief
ISLAMABAD: In a surprise move, the Power Division on Monday blocked a proposed Rs 4.69 per unit relief in Fuel Charges Adjustment (FCA) for K-Electric (KE) consumers for April 2025, citing a new government policy aimed at uniform FCA application across all electricity consumers nationwide. The development came during a public hearing held by the National Electric Power Regulatory Authority (NEPRA), chaired by its Chairman Waseem Mukhtar. The hearing was convened to consider KE's request for provisional FCA relief for April 2025. During the proceedings, Additional Secretary (Power Finance) Mehfooz Bhatti—accompanied by CPPA-G representative Naveed Qaiser—requested NEPRA to defer the FCA determination until the federal government's review motion on KE's Multi-Year Tariff (MYT) determination is decided. However, Bhatti did not provide any supporting financial or technical data to justify the request. March FCA: KE seeks Rs5.02 interim negative adjustment The Power Division formally submitted a letter dated June 23, 2025 to NEPRA seeking the deferment, but the letter was not made public. 'We are under an IMF program, and consumers are being burdened,' Bhatti stated. A NEPRA official rebutted the claim, clarifying that FCA is a pass-through item, which does not impose a direct fiscal burden on the government—unlike the Quarterly Tariff Adjustment (QTA). Chairman NEPRA Waseem Mukhtar expressed strong reservations over the Power Division's approach, stating that such a move compromises regulatory transparency and public trust. He questioned whether the request came directly from the federal government or the Power Division. Bhatti clarified that it was the Power Division's initiative, and that formal cabinet approval was still pending. NEPRA Member Legal, Amina Ahmed, further challenged the justification of the deferment and inquired whether CPPA-G would continue subsidizing KE. Qaiser responded that an agreement exists between CPPA-G and KE for the subsidy. To this, Member Ahmed sarcastically noted, 'You also have agreements with others,' hinting at broader inconsistencies in policy enforcement. Chairman Mukhtar underscored that as a public hearing, the process must be transparent and not conducted 'in the dark.' He raised concerns about the long delay associated with the federal review motion, questioning if the FCA for KE would remain unresolved for as long as six months, and how such a substantial negative adjustment would be managed in the interim. Qaiser initially suggested that since a positive FCA of paisa 10 per unit was being charged to DISCO consumers for April, the same adjustment could be applied to KE customers. However, he immediately retracted the suggestion when the Chairman pointed out the contradiction in passing on positive adjustments while withholding negative ones. Qaiser also claimed that a new FCA mechanism summary had been sent by the Power Division to NEPRA. This was contradicted by NEPRA's Mubashar Bhatti, who clarified that NEPRA had only commented on an earlier summary, and no new document had been received. KE CEO Syed Moonis Abdullah Alvi said KE would comply with NEPRA's decision but voiced concern over the abrupt policy shift. 'In the past, KE consumers paid higher FCAs compared to the rest of the country. No one advocated uniformity then,' Alvi said. 'Now that FCA is lower for Karachi, withholding the relief is not only unfair but also undermines confidence in regulatory fairness,' he added. He emphasized that industries and consumers in Karachi were expecting the relief and deserved equal treatment. Following internal deliberations, Chairman Mukhtar announced that NEPRA would reschedule the hearing for next week to allow further examination of the issues raised. In its written communication, the Power Division referred to NEPRA's June 18, 2025 public notice announcing the June 23, 2025 hearing on KE's request for a provisional FCA for April 2025. KE had sought a negative FCA of Rs 4.69/kWh, amounting to Rs 7.173 billion in consumer relief. By contrast, consumers of state-run DISCOs were charged a positive FCA of Rs 0.9306/kWh for the same month, as per NEPRA's June 5, 2025 determination, notified via SRO 1046(I)/2025. The Power Division argued that this significant discrepancy stems from KE's higher reference fuel cost of Rs 15.9947/kWh—provisionally allowed under NEPRA's May 27, 2025 MYT determination covering FY 2023-24 to FY 2029-30. It pointed out that the reference was originally established during the January–March 2023 quarter of the previous MYT and has continued to be used despite the passage of two years. Highlighting the potential implications of this outdated reference, the Power Division stated that both it and CPPA-G have filed review motions to seek a re-determination of the FCA references under the applicable regulatory framework. Proceeding with the FCA decision based on these disputed provisional values, the Division warned, could lead to regulatory inconsistencies, retrospective adjustments, and unequal consumer treatment. 'This could contravene the principles of fairness, transparency, and due process laid out in the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 and the NEPRA Tariff (Standards and Procedure) Rules, 1998,' the letter added. The Power Division urged NEPRA to defer KE's FCA decision for April 2025 until the motions are decided and new FCA reference values are formally adopted. The Division said the request was being made in the interest of regulatory consistency, consumer equity, and to prevent premature or potentially unjustified adjustments. NEPRA is now expected to revisit the matter in its next scheduled hearing. Copyright Business Recorder, 2025