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KE produced electricity at extremely high rates in June, document reveals

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  • KE’s generation cost was higher in June, document shows.
  • It produced electricity at an average cost of Rs24.90 per unit.
  • Discos, KE may charge additional Rs1.81, Rs2.31 per unit in Aug bills.

ISLAMABAD: Karachiites are forced to pay higher rates for electricity than consumers in other parts of the country, according to a document shown during a public hearing held by the National Electric Power Regulatory Authority (Nepra) on Wednesday.

Nepra conducted a public hearing on the petitions filed by the distribution companies and K-Electric (KE) for a hike of Rs1.8846 per unit and Rs2.336 per unit, respectively. 

The petitions were in relation to the monthly Fuel Charge Adjustment (FCA) for June 2023.

According to the document shown during the hearing, the power generated by KE was about 114% more expensive than the electricity it obtained from external sources in June 2023. 

The utility generated electricity at a cost of up to Rs50.31 per unit in the previous month.

The documents further stated that the KE generated electricity at an average of Rs24.90 per unit in the last month while it purchased power from external sources at an average of Rs 11.65 per unit.

Furthermore, the documents revealed that KE produced electricity from diesel at Rs50.31 per unit, from Liquefied Natural Gas (LNG) at Rs43.37, and from furnace oil at Rs35.91.

The only vertical power utility company in the country didn’t produce a single unit of power from gas (local), the report added.

In June 2023, the documents revealed, KE generated 50.2% of its electricity from its own sources, whereas it bought 49.8% from other sources.

Document presented during Nepra hearing. — Reporter
Document presented during Nepra hearing. — Reporter

KE may charge additional Rs2.31 per unit in August bills

Meanwhile, the power regulator hinted on Wednesday that ex-Wapda distribution companies (Discos) may be allowed to collect an additional Rs1.81 per unit from their cus in the upcoming August bills.

Similarly, Nepra also suggested that KE could potentially collect an extra Rs2.31 per unit from their consumers in the same billing period.

On Wednesday, the authority conducted public hearings on the petitions filed by the distribution companies and K-Electric for a hike of Rs1.8846 per unit and Rs2.336 per unit, respectively. 

These petitions were in relation to the monthly Fuel Charge Adjustment (FCA) for June 2023.

NEPRA Chairman Tauseef H. Farooqi presided over the proceedings in the presence of other authority members, including Rafique Ahmad Shaikh (member technical) representing Sindh, Amina Ahmed (member law) from Punjab, Engr Maqsood Anwar Khan from Khyber-Pakhtunkhwa, and Mathar Niaz Rana (member tariff and finance) from Balochistan. 

If the regulator decides to approve these rates in their final decisions, it will result in an impact of nearly Rs29 billion (including GST) for the Discos and approximately Rs5 billion (including GST) for K-Electric consumers. 

The proposed increase will be applicable to all consumer categories except Electric Vehicle Charging Stations (EVCS) and Lifeline consumers. 

Notably, for May 2023, the FCA for Discos was an increase of Rs1.9039 per unit, while K-Electric saw an increase of Rs1.4465 per unit, and these charges are currently being collected in the July 2023 bills.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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