Author: Admin

Kapco Seeks Higher Tariff, Take-or-Pay Model for Equity Returns

Admin
New-KAPCO

ISLAMABAD:* Kot Addu Power Company Ltd (Kapco) has petitioned the National Electric Power Regulatory Authority (Nepra) for a tariff hike of up to Rs34.47 per unit and a guaranteed return on equity (RoE) under a take-or-pay model. Key Tariff Adjustments Sought: Proposed Equity Return Model: Kapco seeks an RoE *based on an 84.4% load factor, ensuring payments for up to **25% availability, with additional payments tied to **actual power generation. The petition estimates a *net dependable capacity of *495MW (RLNG) and 478MW (LSFO), with *efficiency rates of 46.44% and 45.54%,…

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Pakistan Diverts Another LNG Cargo Amid Gas Transmission Pressure

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Pakistan-LNG

ISLAMABAD: The government has redirected another long-term LNG cargo to the international market to prevent strain on the national gas transmission system, which is experiencing line pack pressure fluctuating between 4.9 and 5 BCF. A senior Petroleum Division official confirmed that Pakistan had earlier requested Qatar to defer 10 LNG cargoes to 2026, of which only five were accommodated under the flexible clause of the 15-year contract. However, Qatar declined to defer the remaining five cargoes. Key Developments:Three LNG cargoes from ENI—an Italian trading company—have been diverted so far, following…

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World Bank Warns of Impending Water Conflicts in Pakistan

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Water-Conflicts

ISLAMABAD:* Pakistan could face severe conflicts over water resources in the near future if urgent measures are not taken to regulate *water distribution and extraction, warned **Basharat Ahmed Saeed, Senior Water Specialist at the *World Bank Group. Speaking at a seminar on water security organized by the *Pakistan Institute of Development Economics (PIDE), Saeed highlighted that at the **current rate of groundwater consumption, *Pakistan could face groundwater depletion by 2030 and surface water depletion by 2037. Key Concerns: Saeed warned that if mismanagement continues, *Pakistan could witness riots over water,…

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Govt, Banks Near Rs 1.23 Trillion Deal to Resolve Power Sector Circular Debt

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Circular-Debt

ISLAMABAD: The government and commercial banks are reportedly finalizing a Rs 1.23 trillion loan agreement aimed at resolving Pakistan’s power sector circular debt. The deal includes Rs 5.23 billion in fresh exposure and the restructuring of Rs 700 billion in existing loans at a lower interest rate, according to sources. A Power Division team recently held talks with commercial banks in Karachi, emphasizing the urgency of the situation. Following the discussions, banking representatives met with Finance Ministry officials to negotiate terms. Key Details of the Deal:Loan Consortium: 15-20 commercial banksRepayment…

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DISCOs Seek 30-Paisa Per Unit Tariff Reduction for February FCA

Admin
power-unit

ISLAMABAD: Electricity consumers may see a 30-paisa per unit reduction in power tariffs as distribution companies (DISCOs) have requested a downward adjustment in fuel charges adjustment (FCA) for February 2025. The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on March 26 at NEPRA Tower, with online access available for stakeholders. The request, filed by the Central Power Purchasing Agency Guarantee Limited (CPPA-G) on behalf of DISCOs, proposes a reduction of Rs0.2984 per unit, bringing the FCA below the reference fuel cost of Rs8.5276 per unit. February…

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