Category: Highlights

Govt Proposes New Payment Model for IPPs to Curb ‘Excessive Profits’

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Govt-Proposes

The government has introduced a new financial framework aimed at restructuring payments to 18 independent power producers (IPPs) by cutting down their capacity costs and recovering what it considers “excessive profits” accumulated over past years. This initiative involves renegotiating power purchase agreements with IPPs established under the 1994 and 2002 policies. The negotiations, expected to conclude shortly, are part of a broader power sector reform to reduce consumer electricity costs. The revised approach will transition IPPs from a “take-or-pay” to a “take-and-pay” model, where payments align more closely with actual…

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Ministry of Energy and Water Signs Agreement with Chinese Company

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china pakistan

The Ministry of Energy and Water announces the signing of an agreement with a Chinese company to invest in energy production projects from domestic resources in Afghanistan. Abdul Latif Mansoor, acting Minister of Energy and Water, urged the company not only to invest in energy production but also to support projects for energy transmission lines and the strengthening of distribution substations. Although Afghanistan has considerable energy resources, it has not yet achieved self-sufficiency in this field. Matiullah Abed, spokesperson for the Ministry of Energy and Water, said: “The acting Minister…

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Conversion of power plants to coal: NEA of China seeks to set up working group for talks

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ISLAMABAD: The National Energy Administration (NEA) of China is said to have shown willingness, in principal, to establish an ad hoc working group to facilitate discussion on conversion of three imported coal-fired power plants to local coal, well-informed sources in the PPIB told Business Recorder. This update was shared with the Power Division which is finalizing sectoral plan to support Government of Pakistan’s (GoP’s) effort to move out of the low growth trap. According to sources, Chinese side will be represented by officials from NEA’s department of International Cooperation, its Planning…

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NEPRA reveals a ‘net increase’ in November energy bills. What does this mean for consumers?

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NEPRA

Rising fuel cost adjustments and limited energy diversification put Pakistani consumers at risk of escalating electricity bills. Here’s how the total tariff works and what to expect moving forward. In a recent NEPRA hearing for September’s fuel cost adjustments (FCA), a case officer revealed a potential increase of ‘15 paisa per unit’ in the energy tariffs for XW-Wapda Distribution Companies (Discos) as a result of a negative 71 paisa FCA. If approved, this could lead to higher electricity bills for consumers in November, and it would mean a month-on-month increased…

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China’s NEA Proposes Working Group for Conversion of Power Plants to Local Coal

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Power-Plants

ISLAMABAD: The National Energy Administration (NEA) of China has expressed its willingness to establish an ad hoc working group to facilitate discussions on converting three coal-fired power plants in Pakistan from imported to local Thar coal, according to sources within the Private Power and Infrastructure Board (PPIB). This development aligns with Pakistan’s broader energy strategy to reduce dependency on imports and foster sustainable growth. Representatives from NEA’s International Cooperation and Planning departments, along with Chinese enterprises operating in Pakistan’s energy sector, will engage in the talks. Pakistan’s Ministry of Energy…

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