NEPRA chief
ISLAMABAD: During a Senate panel meeting, the Chairman of the National Electric Power Regulatory Authority gave insights into the state of the country’s electricity capacity. He said that the cost of the electricity per unit is around 45 rupees, including taxes and charges.
He revealed that Pakistan’s total electricity capacity currently stands at 4,400 megawatts.
However, independent power producers (IPPs) are responsible for 70% of the current production.
The Senate Standing Committee on Cabinet Secretariat called the meeting chaired by PML-N Senator Saadia Abbasi, in Parliament House to discuss the energy-related issues.
Nepra chief Waseem Mukhtar also disclosed the cost of electricity for consumers, which stands at Rs45.06 per unit. This cost encompasses various taxes, primarily capacity and energy charges, in addition to distribution companies’ margins.
Recent macroeconomic indicators have led to a Rs3.17 per unit increase in electricity prices.
During the meeting, Senator Mushtaq Ahmad Khan inquired about Nepra’s issuance of power generation licenses to IPPs. The Nepra Chairman clarified that these licenses are provided by the government. Senator Mushtaq stressed the need to review agreements with IPPs, which he considered “unholy,” in order to address the country’s energy crisis.
He expressed concern that Nepra had not effectively delivered affordable energy to consumers and had instead protected the interests of IPPs.
Senator Saadia directed Nepra to provide details regarding fuel price adjustment charges and capacity payments made to IPPs in the current year. The Senate panel also discussed proposed increases in gas prices and their distribution across the country.
Officials presented data indicating that approximately 2,900 million cubic feet of natural gas is produced domestically, with varying allocations to different provinces.
The power sector consumes 28% of the gas, domestic users 26%, industries 18%, and fertilizer companies 22%.
Gas prices have remained unchanged since 2020, but a letter has been sent to the Petroleum Division requesting a rate hike to address the circular debt of Rs2 trillion.
The price adjustment aims to meet the heightened gas demand expected during the upcoming winter season.
The committee’s chairperson also inquired about the status of the long-delayed Iran-Pakistan (IP) gas pipeline project.
Officials informed the panel that negotiations on the IP gas pipeline have been accelerated in the past year. Nevertheless, commercial and foreign concerns continue to pose significant obstacles to the project’s completion.
Senators Muhammad Akram, Syed Waqar Mehdi, Mushtaq Ahmad Khan, Saifullah Sarwar Khan Nyazee, Naseebullah Bazai, Khalida Ateeb, and Kamil Ali Agha, along with the Chairman of the Oil and Gas Regulatory Authority (OGRA), Masroor Khan, as well as senior officers from the Petroleum Division and relevant departments attended the meeting.
