Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

Mother’s Day heartbreak for Malaysian elephant mourning calf in viral video

May 12, 2025

Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress

May 12, 2025

Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress

May 12, 2025
Facebook X (Twitter) Instagram
Monday, May 12
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » Nepra member flags power sector inefficiencies – Business
Economist Impact

Nepra member flags power sector inefficiencies – Business

adminBy adminMay 11, 2025No Comments3 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 5


ISLAMABAD: A member of the National Electric Power Regulatory Authority (Nepra) has raised serious concerns about inefficiencies in the power system and called for urgent action to address transmission bottlenecks.

In his additional note on quarterly adjustments for the period May to July 2025 applicable across all consumer categories, excluding lifeline and prepaid consumers, Nepra Member (technical) Rafique Ahmad Shaikh highlighted critical shortcomings in the transmission system, which resulted in Rs69 billion in capacity payments to three coal-fired plants despite extremely low utilisation rates.

He made these observations in the context of the third-quarter adjustment for FY25, under which a reduction of Rs1.55 per unit has been approved, leading to a total refund of Rs52.6bn to consumers of Discos and K-Electric in their bills for May, June and July 2025.

Among several ongoing issues, transmission constraints continue to hinder the utilisation of cost-effective power plants located in the southern region — specifically Port Qasim, China Power and Lucky Electric.

Says transmission shortfalls cost Rs69bn in idle coal plant payments

Despite their potential to supply affordable electricity, these plants reported extremely low utilisation factors during the quarter: approximately one per cent for Port Qasim, 10pc for China Power and 0pc for Lucky Electric. However, they claimed significant capacity payments amounting to Rs26.95bn, Rs30.88bn and Rs11.26bn, respectively.

Mr Shaikh further noted that the total capacity payment claimed by Discos for the third quarter of FY25 amounted to Rs362.395bn, compared to a reference figure of Rs459.286bn.

Electricity sales during this period were 19,968GWh, compared to the reference figure of 21,846GWh. Typically, such a decline in sales would lead to an increase in per-unit capacity charges due to the fixed nature of these payments.

“In total, around Rs69.09bn has been claimed in capacity charges despite minimal generation. This reflects a major inefficiency in the system and underscores the urgent need to address transmission bottlenecks and improve generation dispatch practices to ensure optimal use of available low-cost generation resources,” Mr Shaikh stated.

The additional note also pointed out that the termination of certain power purchase agreements (PPAs) and other adjustments related to independent power producers (IPPs) during the quarter contributed to a decrease in projected capacity payments. While this resulted in a negative adjustment for the third quarter, Mr Shaikh emphasised that improved governance and more efficient system operations could have further enhanced electricity sales — potentially leading to a greater reduction in adjustment amounts.

The note also called attention to the performance of public sector Gencos — specifically Genco-II (Guddu Old), Genco-III (TPS Muzaffargarh) and Genco-I (Jamshoro Power Company Limited) — which collectively claimed capacity payments totaling Rs1.23bn (Rs469 million, Rs350m and Rs418m, respectively) despite generating no electricity during the quarter.

These plants, Mr Shaikh noted, suffer from high generation costs and low operational efficiency, with little likelihood of being dispatched by the system operator in the future, given the current surplus of more cost-effective capacity.

Published in Dawn, May 11th, 2025



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

Economist Impact

When markets react to escalation – Newspaper

May 12, 2025
Economist Impact

When markets react to escalation – Newspaper

May 12, 2025
Economist Impact

Agriculture: Horror high-winds and the mango plight – Newspaper

May 12, 2025
Economist Impact

Economic cost of war for India – Newspaper

May 12, 2025
Economist Impact

US-China talks resume as Trump hails ‘total reset’ in trade relations – Business

May 11, 2025
Economist Impact

Rawalpindi farmers informed about benefits of cultivating blackberries – Pakistan

May 11, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Price deregulation improves access to medicines, helps stabilise industry – Business & Finance

May 12, 2025

US, China reach deal to cut trade deficit – Business & Finance

May 12, 2025

BMP says new Tax Ordinance could stifle investment growth – Business & Finance

May 12, 2025

Aramco profit drops as uncertainty hits oil markets – Markets

May 11, 2025
Latest Posts

When markets react to escalation – Newspaper

May 12, 2025

When markets react to escalation – Newspaper

May 12, 2025

Agriculture: Horror high-winds and the mango plight – Newspaper

May 12, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • Mother’s Day heartbreak for Malaysian elephant mourning calf in viral video
  • Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress
  • Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress
  • Chinese EV battery giant CATL launches Hong Kong IPO, seeking US$5.3 billion
  • Chinese EV battery giant CATL launches Hong Kong IPO, seeking US$5.3 billion

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

Mother’s Day heartbreak for Malaysian elephant mourning calf in viral video

May 12, 2025

Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress

May 12, 2025

Hong Kong stocks extend longest streak in a year on China-US trade talks’ progress

May 12, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.