ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Friday announced an increase of around 20 percent in the uniform power tariff to generate Rs3.8 trillion in funds for 10 power distribution companies (discos) during the fiscal year 2024-25, amid Pakistan’s talks with the International Monetary Fund (IMF) for a new bailout program.
The Rs5.72 per unit increase, which will take effect from July 1 after the government issues a formal notification, will provide Rs485 billion in additional revenue to discos and strengthen the government’s position in securing an IMF bailout in July.
Islamabad is currently locked in talks with the IMF for a longer-term bailout of around $8 billion after the last $3 billion helped Pakistan avert a sovereign default in June last year. Pakistan is expected to formally request for the program in the coming weeks.
NEPRA said the total Power Purchase Price (PPP) of ex-WAPDA distribution companies (XWDISCOs) for FY 2024-25 worked out as Rs3,277 billion, which includes Rs1,161 billion for fuel & variable cost and Rs2,116 billion as capacity charges.
“The capacity charges translate into Rs.6,957/kW/month, based on projected average monthly MDI of 25,348 MW. Thus, the capacity charges works out as around 65 percent of the total projected PPP of XWDISCOs, whereas energy cost is around 35 percent of the total projected PPP,” it said in a circular.
“In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs. 17.66/kWh, whereas energy charges are Rs.9.69/kWh, totaling to Rs.27.35IkWh for the FY 2024-25.”
The national average power purchase price works out as Rs.27.00/kWh, according to NEPRA. The generation cost is transferred to the DISCOs as per the prescribed mechanism.
Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
The government has the authority to make adjustments with different rates of increases for various consumer categories without affecting the overall revenue requirement determined by NEPRA.
Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
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Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
- The Rs5.72 per unit increase, which will take effect from July 1, will provide Rs485 billion in additional revenue to distribution companies
- Under last bailout, IMF told Pakistan to prevent further accumulation of circular debt in power sector, arising from subsidies and unpaid bills
Pakistanis among six injured by debris in Abu Dhabi as UAE intercepts drones
- Iran launched drone attacks and missiles at Gulf nations, including UAE, since Saturday after it was attacked by US and Israel
- Minor injuries reported among six Pakistani, Nepalese nationals in two locations across Industrial City of Abu Dhabi Phase 2
ISLAMABAD: Six people were injured by falling debris in Abu Dhabi on Thursday, among them Pakistani nationals, after the UAE’s air defense system intercepted drones, the Abu Dhabi Media Office said in a statement.
Iran has launched a barrage of missiles and drone attacks at the UAE and other Gulf countries to target facilities hosting US troops since Saturday. The attacks come in response to coordinated strikes by the US and Israel against Iran last week after months of negotiations over Tehran’s nuclear program.
The Abu Dhabi Media Office, in a post on social media platform X, said authorities responded to an incident of debris falling in two locations across the Industrial City of Abu Dhabi Phase 2 (ICAD II) “following the successful interception of drones by air defense systems.”
“The incident resulted in minor and moderate injuries to six Pakistani and Nepali nationals,” the statement said.
The statement did not mention how many Pakistani nationals out of the six were injured in the attack.
The Abu Dhabi Media Office urged the public to seek information from only government sources and avoid spreading rumors or unverified information.
Pakistan has asked its citizens in Gulf states to exercise caution, avoid travel and strictly follow official adviseries ever since tensions escalated in the region on Saturday.
The UAE is home to over 1.5 million Pakistani expatriates, one of the largest communities of overseas Pakistanis worldwide.
Pakistan has condemned the US and Israel’s attacks on Iran but also criticized Tehran’s attacks that have targeted countries in the Gulf region, advising all parties to exercise restraint.
