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Express Tribune
2 days ago
- Business
- Express Tribune
K-P eyes NEPRA-style power authority
Khyber-Pakhtunkhwa's Adviser to Chief Minister on Finance, Muzammil Aslam, said during the budget session of the provincial assembly that real electricity relief for the province will only be possible if it generates its own electricity and supplies it directly to the public. He announced that the provincial government plans to establish its own regulatory authority, similar to the National Electric Power Regulatory Authority (NEPRA), to set power tariffs independently. Responding to lawmakers' queries during the ongoing budget debate, Aslam revealed several key initiatives. Among them is a Rs13 billion solar power project for the merged tribal districts. For the first time, oil and gas-producing districts will receive 15 per cent royalty. He emphasized that the budget discussion was a productive experience and appreciated the active participation of assembly members, noting that he attentively listened to all questions for three hours without interruption. Reflecting on Pakistan's economic trajectory, Aslam criticized the performance of mainstream political parties, stating, "Pakistan has been around for 75 years, with just two parties in power for 72 of those. Members have raised issues like poverty, lack of hospitals, and schools — but these same parties were responsible for governance for decades." He also claimed extensive expertise in national budgets, saying, "I've been analyzing federal budgets for 22 years. No budget in the world is based entirely on facts — they're all built on projections." He expressed concern that the federal government allocated only Rs550 million for Khyber-Pakhtunkhwa out of a national development budget of Rs1 trillion. Aslam criticized the PPP for not pushing for the 8th and 9th NFC Awards after the 7th, and defended PTI leader Barrister Saif, saying, "Questions were raised in the House about Barrister Saif, but I want to clarify that he is a trusted ally of PTI." Speaking on counter-terrorism funding, he stated that the 1 per cent share from the federal government is not a favor, but a right earned through the sacrifices of the province. Aslam added that K-P receives Rs3 billion monthly from the federal government under the net hydel profit formula. Projects under the Provincial Energy Development Organization (PEDO) are expected to generate 1,000 megawatts of electricity. "The only sustainable way to provide relief in electricity costs is for the province to produce its own power and supply it directly to its people," he reiterated.
Express Tribune
12-06-2025
- Business
- Express Tribune
'Over $100b needed for carbon-neutral energy sector'
Listen to article Pakistan is transitioning away from fossil fuels at a faster pace than many regional economies, with plans to generate 60% of its energy from renewable sources by 2030 to meet its emissions reduction targets. According to global data compiled by the Energy Institute, the share of fossil fuels in Pakistan's total energy consumption declined by 4.8 percentage points from 86.7% in 2019 to 81.9% in 2023. In comparison, the average decline in fossil fuel usage among low- and middle-income countries during the same period was just 0.8 percentage points (from 90.8% to 90.0%). Further, recent data released by the National Electric Power Regulatory Authority (NEPRA) reveals that clean energy sources, such as hydropower, nuclear, and other renewables, contributed approximately 54% to the country's energy mix last month. The government's move away from furnace oil, the most expensive source of power, is evident, as it accounted for only 1% of the energy mix in April. These figures show that, despite macroeconomic challenges, Pakistan currently holds a relatively cleaner energy mix compared to other Asian and low- and middle-income countries. Neighbouring countries like China and India generate approximately 61% and 75% of their electricity from coal, respectively. In contrast, Thar coal contributes only 13% to Pakistan's energy mix and has played a key role in ensuring grid reliability and affordability. "The energy baseload of Pakistan should be based on indigenous sources of Thar along with renewables to ensure affordability and mitigate geopolitical shocks. Developing economies, including Pakistan, require a balanced transition to renewable energy. Fossil fuels are crucial for short- to medium-term energy stability," said Asif Arslan Soomro, an independent economic and investment analyst. He added that balancing environmental goals with economic stability is crucial, as an abrupt shift from fossil fuels could disrupt growth and strain an already fragile economy. The energy transition will involve enhancing or transforming the entire energy system, and this significant investment relates to the development and upgradation of infrastructure, such as hydropower plants and transmission systems, as well as the phase-out of existing fossil fuel-based power plants. Pakistan requires over $100 billion in investment to transition to a carbon-neutral energy sector, with $50 billion needed to achieve its 60% renewable energy target by 2030, according to the climate ministry. Soomro noted that Pakistan has been ranked as the most vulnerable country to climate change in the Climate Risk Index (CRI) 2025 report, despite contributing less than 1% to global greenhouse gas emissions. "Even though its climate impact remains negligible, Pakistan has committed to unconditionally reduce its overall projected emissions by 15% by 2030. We have also committed to reduce emissions by a further 35%, conditional on the availability of required external financing," he added.
Express Tribune
12-06-2025
- Business
- Express Tribune
Govt set to lift surcharge cap on electricity bills
The federal government is planning to impose additional surcharges on electricity consumers by amending the National Electric Power Regulatory Authority (NEPRA) Act, a move that would allow it to unilaterally increase electricity bills, sources said on Wednesday. According to official sources, the proposed amendment to the NEPRA Act will empower the government to exceed the current 10% cap on electricity surcharges, paving the way for higher charges on consumer bills. Sources said the government was preparing to remove the existing 10% limit on surcharges levied through power bills, with the new legal framework granting it broader authority to determine tariff hikes on a case-by-case basis and for specified durations. A proposal is also under consideration to charge consumers an additional Rs3.23 per unit as a surcharge. However, a final decision regarding the increase has not yet been made, sources clarified. In the past, surcharges collected from electricity bills were primarily used to pay interest on the growing circular debt. The government is now aiming to eliminate the circular debt altogether by borrowing Rs1,275 billion from commercial banks.
Express Tribune
06-06-2025
- Business
- Express Tribune
Nepra allows relief for Karachi, raises tariff for the rest
The National Electric Power Regulatory Authority (Nepra) on Thursday issued two separate notifications, reducing the power tariff by Rs2.99 per unit for the consumers in Karachi, while increasing the rate by Rs0.93 per unit for the rest of the country. The changes in the tariff had been done on account of fuel adjustment for the month of March in case of Karachi and for the month of April for other parts of the country. In any case, the new changes would be reflected in the current month's electricity bills. According to one notification pertaining to the tariff of the K-Electric, the authority "decided to allow a negative FCA of Rs2.9898/kWh (negative Rs4.045 billion) for March 2025, to be passed on to the consumers in the billing month of June 2025". Nepra said the negative FCA would apply to "all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff". It said that the KE would reflect the fuel charges adjustment in respect of March in the billing month of June. "The adjustment would be shown separately in the consumers' bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains," it added. According to a separate notification, the authority "has reviewed and assessed a National Average Uniform increase of Rs0.9306/kWh in the applicable tariff for Discos [Distribution Companies] on account of variations in the fuel charges for April". The notification added that the FCA should apply to all the consumer categories except lifeline consumers, protected consumers, EVCS and pre-paid electricity consumers of all categories who opted for prepaid tariffs. (WITH INPUT FROM NEWS DESK)
Express Tribune
05-06-2025
- Business
- Express Tribune
NEPRA approves Rs50b write-off for KE
Listen to article The National Electric Power Regulatory Authority (NEPRA) approved on Thursday a write-off amount of Rs50.013 billion for K-Electric (KE) under the Multi-Year Tariff (MYT) period of FY2017 to FY2023. While still an acknowledgment, it is much less than what KE had asked for despite meeting NEPRA's strict guidelines on what constitutes prudent cost recovery. The approved amount is part of the broader claim of Rs76 billion submitted by KE, for which NEPRA hearings were held in December 2024 and April 2025. Ensuring the write-off amount pertaining to unrecovered dues comprised an extensive process of meeting stringent conditions, including verification of essential documents, multiple recovery efforts, disconnections, and KE's Board certifying that all reasonable and best possible recovery efforts were undertaken. The approved write-offs are strictly based on criteria laid out in KE's NEPRA-approved write-off policy and have undergone rigorous internal and external audits, including physical surveys and consumer-level documentation checks. During the hearings, KE officials had stressed that these unrecovered amounts were not a result of inefficiency but a reflection of ground realities, such as the presence of unplanned settlementsslumsleading to operational challenges in areas where recoveries are no longer possible due to demolition, migration, or theft. Hearing discussions also included matters like the circular debt, which KE highlighted it had no contribution to. Interveners and commenters shared their statements and opinions regarding KE's write-off claims. Sheikh M Tehseen, President of the Federal B Area Association of Trade & Industry (FBATI), mentioned that KE's financial sustainability and investment plans were dependent on write-off claims, while emphasising that under the current tariff framework, any such claims should be resolved fairly, recognising that 100% recovery in a city like Karachi is unrealistic. Similarly, the President of the SITE Association of Industry, in his letter, had expressed support for a timely resolution of KE's write-off claims, emphasising the need to maintain KE's operational stability while protecting industrial stakeholders from additional financial burden, and urging NEPRA to ensure a balanced decision that supported uninterrupted industrial operations and served the greater public interest. The Secretary General of the Overseas Investors Chamber of Commerce & Industry (OICCI) highlighted KE's investments since privatisation and wrote about its performance as a benchmark for future investors, mentioning that NEPRA's decision would set the mood for the privatisation of DISCOs. He stated that a fair evaluation and subsequent decision would support foreign direct investment (FDI) and restore investor confidence in the energy sector. The last few days have witnessed approvals and decisions by NEPRA for KE's critical matters, including the determination of its transmission, distribution, and supply tariffs, with the write-off decision being the latest in this series.
