Pakistan’s power regulator raises electricity rates citing fuel cost adjustments

A girl uses a traditional hand fan while sitting in a train at the railway station on a hot summer day in Lahore on May 30, 2024, amid the ongoing heatwave. (AFP/File)
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Updated 07 June 2024
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Pakistan’s power regulator raises electricity rates citing fuel cost adjustments

  • Rs3.33 per unit hike is expected to allow ex-WAPDA electricity distribution companies to raise $101.4 million
  • Electricity consumers in Karachi will pay an additional Rs2.68 per unit for power consumption in April 2024

KARACHI: Pakistan’s National Electric Power Regulatory Authority (NEPRA) has increased tariff for ex-WAPDA distribution companies (XWDISCOs) and Karachi Electric for the month of June after making fuel cost adjustment, according to a notification issued on Thursday.

The ex-WAPDA distribution companies in Pakistan are entities that were part of the Water and Power Development Authority (WAPDA) before the power sector was restructured over a decade ago, leading to the unbundling of WAPDA’s power distribution functions.

The reforms resulted in the creation of several independent distribution companies (DISCOs), each responsible for providing electricity to specific geographical regions of Pakistan. While these companies operate independently, they are still regulated by NEPRA that notified a Rs3.33 per unit hike for them which would reflect in June 2024 bills.

The move is expected to help them to raise about Rs29 billion ($101.4 million) of additional revenue this month.

“The authority… has reviewed and assessed a National Average Uniform increase of Rs3.332 1/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of April 2024,” said the NEPRA notification.

“The above adjustment of Rs3.3321/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers,” it added.

Apart from these companies, the power consumers in Karachi will pay an additional Rs2.68 per unit in June, raising the tariff to Rs10.1 per unit. The tariff will further increase to Rs3.11 per unit in July which would ease to Rs0.998 per unit in September 2024 under monthly fuel cost adjustment charges, according to the notification.

Pakistan produces expensive electricity due to a combination of factors including high reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses and chronic issues like circular debt and regulatory inefficiencies.

The outdated infrastructure and inefficient power plants further exacerbate costs, while underutilization of domestic resources such as hydropower and coal add to the problem.

Additionally, fluctuations in foreign exchange rates and complex tariff structures contribute to higher electricity prices.

High power cost is one of the key factors that leads to spiraling inflation.\

According to the Pakistan Bureau of Statistics, the electricity charges had increased by 58.8 percent until May this year.


Pakistan combing for perpetrators after deadly Balochistan attacks

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Pakistan combing for perpetrators after deadly Balochistan attacks

  • Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-locals
  • Militants stormed banks, jails, police stations and military installations, killing 31 civilians and 17 security personnel, the Balochistan chief minister says

QUETTA: Pakistan forces were hunting on Sunday for the separatists behind a string of coordinated attacks in restive Balochistan province, with the government vowing to retaliate after more than 190 people were killed in two days.

Around a dozen sites remained sealed off, with troops combing the area a day after militants stormed banks, jails, police stations and military installations, killing at least 31 civilians and 17 security personnel, according to the chief minister of Balochistan province.

At least 145 attackers were also killed, he added, while an official told AFP that a deputy district commissioner had been abducted.

That figure includes more than 40 militants that security forces said were killed on Friday.

Mobile internet service across the province has been jammed for more than 24 hours, while road traffic is disrupted and train services suspended.

After being rocked by explosions, typically bustling Quetta lay quiet on Sunday, with major roads and businesses deserted, and people staying indoors out of fear.

Shattered metal fragments and mangled vehicles litter some roads.

"Anyone who leaves home has no certainty of returning safe and sound. There is constant fear over whether they will come back unharmed," Hamdullah, a 39-year-old shopkeeper who goes by one name, told AFP in Quetta.

The chief minister, Sarfraz Bugti, told a press conference in Quetta that all the districts under attack were cleared on Sunday.

"We are chasing them, we will not let them go so easily," he said.

"Our blood is not that cheap. We will chase them until their hideouts."

The Baloch Liberation Army (BLA), the province's most active militant separatist group, claimed responsibility for the attacks in a statement sent to AFP.

The group, which the United States has designated a terrorist organisation, said it had targeted military installations as well as police and civil administration officials in gun attacks and suicide bombings.

Interior Minister Mohsin Naqvi, who flew to Quetta late Saturday to join funerals, claimed without offering any evidence that the attackers were supported by India.

"We will not spare a single terrorist involved in these incidents," he said.

In a press conference on Sunday, Pakistan Defence Minister Khawaja Asif likewise claimed the attackers enjoyed links to India and pledged to "completely eliminate these terrorists".

India denied any involvement.

"We categorically reject the baseless allegations made by Pakistan, which are nothing but its usual tactics to deflect attention from its own internal failings," said foreign ministry spokesman Randhir Jaiswal on Sunday.

'BROAD DAYLIGHT'

Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-local Pakistanis in the mineral-rich province bordering Afghanistan and Iran.

Saturday's attacks came a day after the military said it killed 41 insurgents in two separate operations in the province.

The insurgents released a video showing group leader Bashir Zaib leading armed units on motorcycles during the attack.

Another clip claimed to show the abducted senior official from Nushki district.

In another district, militants freed at least 30 inmates from a district jail, while seizing firearms and ammunition. They also ransacked a police station and took ammunition with them.

"It was one of the most audacious attacks in the region in recent years, as unlike other attacks, it took place in broad daylight," Abdul Basit at the S. Rajaratnam School of International Studies in Singapore told AFP.

"It is alarming that militants, with coordinated manpower and strategic acumen, have now reached the provincial capital," he added.

Several of the BLA's videos featured women insurgents, while Defence Minister Asif said at least one of the suicide bombers was a young woman.

"They continue to showcase women strategically in high-visibility attacks," Basit said.

Pakistan's poorest province and largest by landmass, Balochistan lags behind the rest of the country in almost every index, including education, employment and economic development.

Baloch separatists accuse Pakistan's government of exploiting the province's natural gas and abundant mineral resources, without benefiting the local population. The government denies this.

The BLA has intensified attacks on Pakistanis from other provinces working in the region in recent years, as well as foreign energy firms.

Last year, the separatists attacked a train with 450 passengers on board, sparking a deadly two-day siege.