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Business Recorder
10-07-2025
- Business
- Business Recorder
Nepra okays Rs4.043/kWh negative adjustment for KE, 50 paisa per unit for Discos
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a negative adjustment of Rs 4.043/kWh for K-Electric (KE) for April 2025 on provisional basis, and negative adjustment of 50 paisa per unit for consumers of Discos for May 2025 under the monthly Fuel Charges Adjustment (FCA) mechanism. The Authority conducted hearings on these matters on June 30, 2025, which was attended by officials from relevant entities and the private sector. On the issue of KE, Power Division on June 27, 2025, again requested to defer the hearing by 15 days as it is experiencing increased workload due to Annual Tariff Rebasing, as well as, finalisation of Annual Budget of FY 2025-26. However, the Authority did not accept the request of the Ministry of Energy (MoE) to again defer the hearing. During the hearing, Power Division reiterated its submissions and again requested to defer the hearing. The MoE stated that the Authority, in the past has been applying FCA's on KE consumers with delay as was done for the period from July 2019 to May 2020 and recently from July 2023 to March 2024. It was also explained that the FCA mechanism of ICE is different from XW Discos and impact of higher FCA references of KE is picked up by the government of Pakistan as subsidy. The MoE further submitted that a subsidy of Rs.125 billion is being provided in base tariff for ICE consumers, to make the base tariff and quarterly adjustments uniform with rest of the country. On the same analogy, KE's FCA needs to be made uniform with rest of the country, for which a summary is being presented before the Cabinet, in order to provide relief to the exchequer. Accordingly, the MoE requested to hold the FCA decision of April 2025 till the time approval of the Cabinet is sought to implement uniform FCA across the country. On inquiry by Member Law regarding the time it would take the MoE to bring policy guidelines for uniformity of FCA across the country, the MoE responded that it would take around 10-15 days before the policy guidelines are finalised and sent to Nepra. Upon inquiry from Member Technical, the MoE clarified that it is a seeking a prospective application of uniform FCA, as FCA for April 2025 would be charged in the billing month of July 2025. The Authority noted that provisional FCA proceedings have been taking place since approx. two years, yet the MoE never objected to the reference FCC of Rs.15.9947/kWh. The proceedings for the FCA of April 2025 were initiated through advertisement of June 12, 2025, and hearing was rescheduled twice, but MoE has not been able to file any policy guidelines/ obtain approval of the Cabinet. Thus, the request of MoE to defer the FCAs is premature in the absence of any formal decision by the Cabinet. Moreover, Nepra Act under Section 31(7) provides that the Authority may, on a monthly basis and not later than a period of seven days, make adjustments in the approved tariff on account of any variations in the fuel charges, although, such timelines are directory in nature and not mandatory. The Nepra Act allows for uniformity in tariff to public sector licensees; however, National Electricity (NE) Policy 2021 provides that additionally, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatisation) through incorporation of direct/ indirect subsidies. Therefore, it remains to be seen whether, the Nepra Act and other applicable documents allow for the uniformity of FCAs or otherwise. Additionally, the pendency of MLRs does not bar the Authority to proceed with the FCA proceedings, as there is not stay in field. The Authority also understands that definition of Federal Government emanates from Constitution of Pakistan itself which states that Federal Government means Prime Minister and Cabinet as clearly enunciated by the Supreme Court of Pakistan in Mustafa Impex case. As the intervention request is from the MoE itself, which is not a juristic separate person rather an administrative unit of the Federal Government. During the hearing on FCA for Discos, Reihan Javed, a representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and commentator Aamir Sheikh expressed concerns regarding the Furnace Oil levy. They argued that reliance on RFO-based plants could adversely affect the cost of power on the national grid. Based on the discussion and in light of previous decisions of the Authority, the FCA for each Disco has been worked out individually— accounting for energy purchased from CPPA-G, bilateral contracts (captive power, SPPs), and net metering—as part of each Disco's separate energy basket. However, given that a uniform tariff regime is mandated under the Nepra Act, National Electricity Policy, and National Electricity Plan, the Authority has also calculated a National Average Uniform Monthly FCA to be charged from all Disco consumers. CPPA-G has been directed to ensure inter-Disco settlement of the FCAs calculated for each XW Disco, and the FCA charged from consumers, in order to accurately reflect the energy procurement and cost structure specific to each Disco. The Authority decided that the adjustment will apply to all consumer categories except lifeline consumers, protected consumers, Electric Vehicle Charging Stations (EVCS), and all categories of pre-paid electricity consumers who have opted for the pre-paid tariff. Copyright Business Recorder, 2025
Hans India
03-07-2025
- Business
- Hans India
Welfare, development two eyes for me: Naidu
Kuppam (Chittoor dist): Chief Minister N Chandrababu Naidu on Wednesday termed development and welfare as two eyes for him, saying he would continue both in equal measure. Speaking at a public meeting during his two-day visit to Kuppam, his longtime Assembly constituency in Chittoor district, on Wednesday, the CM spoke about his government's balanced approach to welfare and development. 'Development and welfare are two eyes for me. Revenue must be used for the benefit of the poor, but without neglecting development which will in turn enhance the state's revenues,' he said. Naidu strongly criticised the previous administration for what he described as severe financial mismanagement, claiming it had left the state burdened with Rs 10 lakh crore in debt and had misused central funds, disrupting important welfare schemes. He stated that his government was working to lead Andhra Pradesh from a state of ruin toward meaningful development. 'We are guiding the state, which was driven into ruin, towards development. I have come to you as part of the first step in good governance,' he added. The Chief Minister reaffirmed his commitment to transform Kuppam into a model constituency for the entire nation. He outlined key projects and developmental initiatives underway in the area. He pointed out at the completion of the Handri-Neeva Sujala Sravanthi project, which was undertaken at a cost of Rs.3,890 crore, and assured the gathering that water would reach the last ayacut in Kuppam by the end of the year. The Chief Minister further said: 'In Kuppam alone, we are carrying out works worth Rs.1,292 crore, and projects worth Rs.125 crore have already been completed'. He also noted that ensuring pothole-free roads across the state remains a top priority. Naidu added that under the 'Swarna Kuppam' project, infrastructure in the constituency is being upgraded with the construction of concrete and bitumen roads. He highlighted efforts to boost local industry and market connectivity through the promotion of 'Brand Kuppam' and said that plans for a new airport, with Rs.850 crore allocated, were underway. Assuring the public that land acquisition would be fair and transparent, he promised generous compensation packages for those who part with their land. Pushing forward his green energy agenda, Naidu said rooftop solar panels would be installed on every house in Kuppam under the PM Suryaghar Yojana. 'I will stand by you until every household has solar power, which would drastically reduce electricity costs and improve energy independence', he said. Naidu urged the people to support leaders who truly stand by them, not those who engage in political violence. 'I don't believe in the politics of murder or death. I believe in politics of public good,' he said, defending himself against what he claimed were baseless allegations and politically motivated attacks. On this occasion, Naidu launched various development projects while four MoUs with Aditya Birla Group, eRoyce motors, ACE International Limited and SVF Soya Pvt Ltd were signed in his presence. Also, he distributed welfare payments to the beneficiaries. Chittoor MP D Prasada Rao, MLC K Srikanth, Collector Sumit Kumar, KADA Project Director Vikas Marmat were also present.
