ISLAMABAD: A relief package to provide electricity to industries across Pakistan at reduced rates has been prepared in an effort to improve industrial growth, ARY News reported on Wednesday, citing sources.
The four-month relief package will be applicable across the country including K-Electric jurisdiction, after formal approval of the relevant authorities, including Cabinet Committee on Energy (CCoE).
Sources told ARY News that the impact of energy relief package will be around Rs25 billion. The proposed package for industrial consumers will be offered from November 2023 to February 2024.
In the relief package, sources claimed, it has been proposed to give relief from Rs3.32 to Rs17.84 per unit tariff of electricity to industries. It has also been proposed to reduce the tariff per unit for consumption of excess electricity to Rs26.29.
Sources further said that the relief package will be offered on excess consumption of electricity compared to last year’s one.
Three proposals have been finalised for the package: relief of Rs3.32 to Rs7.86 per unit, Rs8.57 to Rs14.13 per unit and Rs12.28 to Rs17.84 per unit. As per the proposals, the per unit power tariff will be reduced to Rs36.54, Rs30 and Rs26.29, respectively.
It is pertinent to mention here that the industrial sector was demanding relief in power tariff, saying that high electricity costs were hurting production and exports.
ISLAMABAD: The caretaker government has started preparations to approve a massive hike in gas tariff and a summary would be presented before the Economic Coordination Committee (ECC) on Monday (tomorrow), ARY News reported on Sunday.
Sources told ARY News that the Petroleum Division will present a summary before the ECC to hike the gas tariff by 200% and 172% for domestic consumers ahead of the winter season.
The hike will be imposed on base tariff and monthly fixed charges for different categories of consumers.
The Petroleum Division suggested to increase the gas price by 200% for different categories of consumers and the hike in monthly fixed charges for protected consumers by 3,900% from Rs10 to Rs400.
The hike plan includes an increase of Rs100 for non-protected consumers for monthly use of 0.25 cubic metre, Rs300 per mmBtu for consumers using 0.60 cubic metre in a month, Rs600 per mmBtu for non-protected consumers of 100-150 cubic metre, Rs800 per mmBtu for 200 cubic metre consumers, Rs1,900 per mmBtu for 300 cubic metre consumption and Rs1,500 per mmBtu for 400 cubic metre consumers.
The hike plan for export units ranging from Rs950 to Rs2,050 per mmBtu was suggested by the Petroleum Division. Moreover, the division also recommended an hike from Rs1,400 to Rs2,600 per mmBtu for the non-export units, Rs2,595 per mmBtu for the CNG sector.
The recommendations for other industries include Rs2,900 per mmBtu for the cement sector, Rs4,400 per mmBtu for the CNG sector and maintaining the prevailing prices for the power generation units and tandoors.
Sources said that the caretaker finance minister summoned the ECC session at 4:00 pm tomorrow and suggested to implement the gas tariff hike plan from October 1.
Fixed charges on non-protected gas consumers
The Petroleum Division recommended a 334.78% hike on monthly fixed charges on non-protected consumers up to Rs2,000 and a 172% hike in the base tariff.
The hike plan for fixed charges includes an increase of 117.39% over consumption of 150 cubic metres (from Rs460 to Rs1,000), 334.78% on 200 cubic metres up to Rs1,540 and Rs2,000 for the consumers using more than 200 cubic metres.
The IMF is seeking 100pc ‘rise’ in the gas tariff to minimize the losses and circular debt in Pakistan’s gas sector.
The international lender showing concerns about not increasing the gas tariff from July 1 during a virtual meeting with the Pakistan finance ministry officials, demanded the caretaker government of Pakistan to immediately approve the hike in gas tariff, the source claimed.
They further said IMF asked the Pakistan finance ministry that denying the increase in gas tariff is a ‘violation’ of the Standby Agreement.
The Fund suggested for recovery of Rs46 billion loss of gas companies from July to September. During the talks, the IMF officials were informed that caretaker Finance Minister Dr Shamshad Akhtar is in China.
ISLAMABAD: The imposition of a new tax on high-speed diesel (HSD) has reversed the relief in petrol and diesel prices, citing sources, ARY News reported on Monday.
After oil marketing companies (OMCs) and dealers’ margins, the caretaker government has imposed a new tax of Rs0.24 per litre on high-speed diesel, reversing the actual relief in petrol and diesel prices to the masses.
Sources told ARY News that an extra tax of 24 paisas per litre was taken into effect on the HSD. Additionally, Rs0.88 per litre dealers’ margin was increased on petrol and diesel besides hiking the OMC margin worth Rs0.41 per litre.
According to a notification issued by the Oil and Gas Regulatory Authority, the rate of petrol has reached Rs 283.38 per litre with a reduction of Rs 40 per litre.
Whereas, the price of high-speed diesel (HSD) has been reduced by Rs 15 per litre to Rs 303.18. Meanwhile, the Kerosene oil prices dropped by Rs 22.43 per litre to Rs 214.85.
On October 1, petrol price came down by Rs 8 per litre in Pakistan after a two-month hike and set at Rs 323.38 per litre.
According to details, the rate of petrol was reduced to Rs 323.38 per litre with a decline of Rs 8 per litre.
Meanwhile, the price of high-speed diesel (HSD) dropped by Rs11 per litre to Rs318.18 whereas Kerosene oil prices reduced by Rs 7.53 per litre to Rs 237.28.
ISLAMABAD: The price of petrol has been dropped by a massive Rs 40 per litre in Pakistan, ARY News reported.
According to notification issued by Oil and Gas Regulatory Authority, the rate of petrol has reached Rs 283.38 per litre with a reduction of Rs 40 per litre.
Whereas, the price of high-speed diesel (HSD) has been reduced by Rs 15 per litre to Rs 303.18. Meanwhile, the Kerosene oil prices dropped by Rs 22.43 per litre to Rs 214.85.
According to details, the rate of petrol was reduced to Rs 323.38 per litre with a decline of Rs 8 per litre.
Meanwhile, the price of high-speed diesel (HSD) dropped by Rs11 per litre to Rs318.18 whereas Kerosene oil prices reduced by Rs 7.53 per litre to Rs 237.28.
It is pertinent to mention here that on Sept 15, the government made a massive hike in petrol and diesel prices after making tall claims of providing relief to the masses.
A massive hike of Rs26.2 per litre was made on petrol and the new price would be Rs331.38 per litre. Moreover, Rs17.34 was jacked up on diesel and the new price would be Rs329.18 per litre.
Within a month, the caretaker government hiked the petrol price by Rs58 per litre and diesel by Rs56 per litre.
ISLAMABAD: The caretaker federal government is likely to approve a massive hike in gas tariff up to 200% and an increase in terms of fixed charges for protected consumers, ARY News reported on Wednesday.
The caretaker federal government started preparations to throw an additional financial burden on the gas consumers.
Sources told ARY News that recommendations have been forwarded to the government to increase fixed charges on the protected consumers.
It was recommended to increase the fixed charges from Rs10 to Rs400 on the protected consumers. Overall 200% hike was recommended, including 172% increase for domestic consumers and 198.33% for other categories.
It was also recommended to make the hike on the gas tariff effective from October 1, sources added.
Earlier in the month, it emerged that the caretaker government will announce to hike in gas prices on the demand of the IMF. The former PDM government had deferred the decision of the gas price hike.
The International Monetary Fund (IMF) demanded to enhance the gas prices in the country by 45 percent.
The IMF has demanded to generate 435 billion rupees in revenue with an increase in gas rates, sources said. The lender has not been prepared to show flexibility in its demand for a hike in the gas tariff, sources said.
Sources shared that the government has prepared a strategy to save small consumers of gas from the rate hike by avoiding increases for them. “Caretaker government will save 64 per cent gas consumers from the price hike,” according to sources.
The government is expected to announce a 45 pct hike in gas rate with an official notification soon, sources said.
The gas tariff hike will come into force from the back date of July 1st, sources said.
ISLAMABAD: The power division on Tuesday released the figures about electricity theft in Sindh province, ARY News reported.
The latest figures released by the power division revealed 50pc of electricity is being theft in eight districts, while up to 30pc power is being used illegally in 19 other districts of Sindh province.
The report further stated that power theft is less than 20pc in two districts of Sindh. According to break up, the per centage of electricity theft in Jacobabad and Sujawal districts is nearly 60 per cent.
59 and 58 per cent of power are being theft in the Jacobabad and Sujawal districts of Sindh, respectively.
LAHORE: The secretary power division said that power theft in Punjab has caused more than Rs 100 billion in one year, ARY News reported.
As per details, the power division secretary stated that 113 grid stations had to take the burden of the Rs 100 billion annual loss.
However, the power division declared 537 grid stations free of power theft whereas power theft at 27 grid stations in Punjab resulted in Rs 42 billion annual loss.
Earlier, the government decided to suspend the electricity in the power theft areas of Lahore. According to sources, the feeder with 30 percent line losses will face 12 hours of electricity suspension from 6 pm and 6 a.m.
The Power Ministry told the LESCO authorities to implement the decision without any pressure as the 97 feeders of LESCO have over 30 percent line losses.
It is pertinent to mention here that the Power Division recovered over Rs6 billion during a countrywide power theft crackdown.
As per details shared by the Power Division, Lahore Electric Supply Company (LESCO) recovered Rs1.45 billion during the crackdown, while 406 electricity thieves have been rounded up. LESCO registered 4,928 FIRs against the people found stealing power during the crackdown.
Hyderabad Electric Supply Company (HESCO) has recovered Rs1.21 billion and arrested 31 people on power theft charges after registering 310 FIRs. Multan Electric Supply Company has recovered Rs8005 million from the defaulters, while 249 people were arrested and 497 FIRs were registered.
ISLAMABAD: Giving another shock to the already burdened power consumers, the National Electric Power Regulatory Authority (NEPRA) on Thursday approved an increase in tariff by Rs1.71 per unit, ARY News reported.
As per the issued notification, the power regulatory authority approved the increase in power tariff under fuel adjustment charges (FAC) for the month of August.
The notification stated that the surge in electricity tariff would be applied to the bills of October. Meanwhile, the hike will not be applicable to Lifeline and K Electric customers.
Separately on October 3, the National Electric Power Regulatory Authority (NEPRA) approved an increase in the price of electricity per unit by Rs 3 28 per unit as part of the quarterly adjustment.
According to the notification issued by NEPRA, a rate of Rs 3.28 per kilowatt hour (kWh) shall be recovered from different consumers categories of power distribution companies (DISCOs) and K-Electric in a period of six (06) months i-e October 2023 to March 2024.
ISLAMABAD: For the first time in Pakistan, the officers from the Establishment Division have been deputed to power distribution companies (DISCOs) by the caretaker government, ARY News reported on Wednesday.
The caretaker government approved the deputation of officers from the Establishment Division to the DISCOs for the first time in Pakistan.
A notification was also issued by the caretaker federal government regarding the deputation of 10 Grade-17 officers in different power distribution companies under the administration of the Water & Power Development Authority (WAPDA).
According to the notification, Owais Arshad Bhatti from the Centre was deputed to Islamabad Electric Supply Company (IESCO), Rafia Qayyum from Punjab government to Faisalabad Electric Supply Company (FESCO), Muhammad Murtaza from Punjab to Multan Electric Power Company (MEPCO), Maham Mushtaq from Punjab to Gujranwala Electric Power Company (GEPCO), Sarah Loni from Punjab to Lahore Electric Supply Company (LESCO), Muhammad Shehzad Ahmed from Sindh government to Hyderabad Electric Supply Company (HESCO), Muhammad Ahmed Ali from Sindh to Sukkur Electric Power Company (SEPCO), Hamoodur Rehman from Sindh to Kanpur Electricity Supply Company (KESCO), Muhammad Hashim Azeem from Khyber Pakhtunkhwa (KP) government to Peshawar Electric Supply Company (PESCO) and Muhammad Masood Chaudhry from KP to Tribal Electric Supply Company (TESCO).
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has proposed the government to increase the electricity tariff by Rs3.28 per unit on account of quarterly adjustment, ARY News reported on Friday.
According to details, the NEPRA has decided to increase electricity tariff, preparing to throw additional burden of Rs160 billon on the power consumers.
The regulatory authority has sent the summary to caretaker federal government, proposing an increase of Rs3.28 in electricity tariff under the fourth quarter adjustment of financial year 2022-23.
The increase – which will be implemented after federal government’s nod – will also be applied to K-Electric consumers. The power consumers will have to make additional payments in next six months – October 2023 to Marcy 2024.
It is pertinent to mention here that protests were held across the country against the exorbitant rise in the power tariff and inclusion of excessive taxes in the electricity bills.
At some places people incensed by overbilling burnt electricity bills to vent their anger, while some political forces warned of protest sit-ins outside the K-Electric offices.
The unrest over the increased electricity bills comes as the cash-strapped Pakistan faces an economic crisis, with inflation hovering at around 29%.
Earlier, it was reported that the International Monetary Fund (IMF) had stopped Pakistan from giving relief to the power consumers using over 200 units, monthly.
“Circular debt will not come down if relief is given on electricity bills,” IMF said on Pakistan’s relief plan, as per sources.
The relief in terms of delayed payments of the bills will only be given to consumers, who are using under 200 units for six months continuously.
The relief will be revoked, if the bill of a consumer comes over 200 units in six months, the sources said.
While addressing a press conference alongside Sindh Governor Kamran Tessori, Caretaker Energy Minister Muhammad Ali said the government is taking indiscriminate action against the electricity and gas thieves.
“We are making efforts to control everything. We will try to control the electricity tariff and provide low-cost power to industries from October 31. The inflated bills were received due to electricity theft, whereas, the tariff was hiked due to the increase in USD price.”
The energy minister said that it is impossible to amend the previous agreements, however, the government would find a solution without violating the terms. He vowed that low-cost electricity would be provided to the industries in the winter season.
He admitted that no reduction was made to the prices of solar equipment, however, the government would formulate a strategy to promote solarisation.
