Author: Admin

CPPA-G Seeks 71 Paisa per Unit Negative FCA Adjustment for September 2024

Admin
CPPA-FCA

ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has proposed a 71 paisa per unit negative adjustment under the Fuel Cost Adjustment (FCA) mechanism for September 2024, aiming to refund Rs 8.55 billion to consumers. The National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on this adjustment on October 30, 2024. According to CPPA-G data, hydel power contributed 4,838 GWh (38.75%) of the total generation in September. Local coal-fired plants generated 1,261 GWh at Rs 12.2882 per unit, while imported coal accounted for 1,149 GWh at…

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Govt Revises Agreements with 8 Bagasse-Fired IPPs, Securing Billions in Savings

Admin
power-subsidy

ISLAMABAD: The government has successfully renegotiated agreements with eight bagasse-fired Independent Power Producers (IPPs), achieving substantial financial savings estimated between Rs 85-100 billion. These revisions include a reduction of Rs 8 billion from the Rs 22 billion recently approved for upward tariff adjustments. Among the sugar mills signing the revised Power Purchase Agreements (PPAs) are Hamza Sugar Mills, Chiniot Sugar Mills, and others. Key changes include lowering the rate of bagasse from Rs 5,600 per ton to Rs 4,500, with a 5% retrospective deduction. The renegotiated deals are expected to…

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Centre and AJK Struggle to Finalise Power Tariff and Water Usage Charges

Admin
Power-Tariff

ISLAMABAD: The federal government and the Azad Jammu and Kashmir (AJK) government have been unable to agree on electricity tariffs and Water Usage Charges (WUC), with significant differences emerging between federal entities and the AJK authorities. In a recent meeting chaired by Advisor to the Prime Minister on Inter-Provincial Coordination, Rana Sanaullah Khan, it was noted that multiple discussions had failed to resolve the outstanding WUC issues. The AJK government is pushing for retrospective payments for water usage from the commissioning of the Neelum Jhelum Hydropower Project in 2018, a…

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Discos Seek Rs8.5bn Refund for September Fuel Overcharges

Admin
Fuel-Overcharges

ISLAMABAD: Public sector power distribution companies (Discos) have requested a refund of approximately Rs8.5 billion, proposing a 70-paise per unit negative fuel cost adjustment (FCA) in upcoming bills for electricity consumed in September. This marks the third consecutive month of negative FCAs, largely attributed to increased fuel allowances following a 20% rise in base tariffs, effective from July 1, 2023, to June 30, 2025, as approved by the National Electric Power Regulatory Authority (Nepra). The Central Power Purchasing Agency (CPPA) has filed a petition, citing a reference fuel cost of…

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Nepra Grants 14% Dollar-Based Return to K-Electric in Divisive Decision

Admin
NEPRA-KE

ISLAMABAD: In a split decision, the National Electric Power Regulatory Authority (Nepra) has approved a 14% dollar-indexed return on equity (ROE) for K-Electric (KE) generation plants under a multi-year tariff extending to 2030. This decision, which faced strong opposition from Nepra’s member tariff, is tied to KE’s power plants operating on fuels like high-speed diesel (HSD) and liquefied natural gas (RLNG). While the majority of Nepra supported KE’s request, member Mathar Niaz Rana criticized the decision as “excessive and unfair,” citing concerns over high costs and limited energy contribution. Rana…

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