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Another Rs4.66 per unit hike in power bills expected next month

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  • The CPPA is representing Discos in the case.
  • NEPRA holds public hearing on CPPA petition.
  • NEPRA asks CPPA about operating plants on imported fuel.

ISLAMABAD: Electricity consumers are expected to bear an extra burden of Rs33 billion if the National Electric Power Regulatory Authority (NEPRA) approves Rs4.66 a unit proposed increase in power prices in January 2024 bills, The News reported.

The proposed price enhancement is attributed to the fuel adjustment for November 2023.

The public hearing on the Central Power Purchasing Agency (CPPA) plea was conducted by the NEPRA. The CPPA was representing Discos in the case.

NEPRA questioned the CPPA about operating power plants on imported fuel while shutting down more cost-effective plants for maintenance. Notably, the maintenance-related shutdown of the Thar coal-based plant contributed to higher electricity prices.

Moreover, a 13% decrease in electricity consumption and the utilisation of power plants running on costly imported LNG fuel in November 2023 added to the financial burden on consumers.

The NEPRA chairman stated that when demand falls below the reference level, negative growth in power generation raises costs. This leads to positive adjustments in monthly fuel charges (FCAs) and quarterly adjustments (QTAs). Due to low-capacity utilisation, capacity charges rise as consumers must cover fixed charges at all costs. In its petition, CPPA had requested previous adjustments of Rs15.9 billion (Rs2.117/unit) to be passed on to consumers in January 2024 bills.

Responding to allegations of overbilling, NEPRA asserted its track record of implementing past decisions and vowed to enforce its recent decision. The regulator issued explanations to power distribution companies (Discos) and indicated the initiation of legal actions against them. In response to a question about recent loadshedding, the CPPA stated, “Discos manage loads due to losses, hydel generation has decreased, expensive generation is occurring, and gas supply is unavailable to power plants, leading to load management. Additionally, in line with government policy, we implement 2-hour load management.”

Meanwhile, the power division in a separate statement attributed recent loadshedding on December 25th and 26th to multiple grid station failures in the Multan region and other Discos. The tripping of 132kv, 220kv, and 500kv grid stations, coupled with reduced hydel generation due to fog, created system constraints. A 1,600 MW shortfall in generation was attributed to canal closure, and a 700 MW shortage was due to limited LNG availability.

The Power Division is actively working to minimise shortfalls, using furnace oil to compensate for the LNG shortage and generate 800 MW. Loadshedding was necessary to manage system constraints and ongoing efforts are in place to stabilise the system.

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Punjabi bakers decide to charge Rs. 15 for “roti.”

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The bread, known as roti, will be sold for Rs 15 by the bakers association.

During their discussion, the association promised Food Minister Bilal Yasin that the rate of roti will be reduced.

The minister was there when Association President Aftab Gul recorded a video message committing to sell rotis for Rs15 each.

According to him, the administration decided to lower the rate of flour. He continued, saying that the group was supporting the government hand in hand to stop inflation.

The price of flour has been drastically lowered, according to Food Minister Bilal, to help the populace. He stated, “the government aimed at providing quality and affordable bread to the masses.”

He said that the recent reduction of Rs 1,200 in the price of flour was the biggest drop in the commodity’s prices in the nation’s history.

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Day four of the AJK inflation protest begins as talks come to a standstill.

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Following the collapse of talks between the Awami Action Committee and the AJK government on Sunday, the shutdown strike and protests in Azad Kashmir over rising flour and energy costs started their fourth day on Monday.

The ongoing shutdown and wheeljam strike would continue until their demands are fulfilled, according to the Awami Action Committee.

AAC-led march on state capital Muzaffarabad today has brought the valley to a near stop. The caravans are coming from many AJK cities, and they are headed towards Rawalakot. The march is being caused by the impasse in the negotiations.

Reportedly, the demonstrators have blocked the 40-kilometer Kohala–Muzaffarabad Road, which connects Kohala Town and Muzaffarabad, multiple times.

Traffic on main thoroughfares and roads has decreased, and large police contingents have been stationed at strategic points and roundabouts.

After fighting broke out between the police and demonstrators in Mirpur on Saturday, which left one policeman dead and numerous others injured, the AJK government dispatched Rangers.

Everything is completely suspended, including internet and cellular services, business, and education.

Under the pretext of talks, Awami Action Committee leader Sardar Umar Nazir Kashmiri has charged that the administration is using deceptive methods.

Apart from the flour subsidy, he continues, the administration will not budge on any other demand.

CONVENE MEETINGS, PRESIDENT, PM

All parties involved have been asked by Prime Minister Shehbaz Sharif and President Zardari to use moderation and engage in discussions to find a solution. According to both, the demonstrators in Azad Kashmir should have their legitimate demands met.

The issue in AJK will be the topic of a significant meeting that Prime Minister Shehbaz Sharif is calling today, Monday.

The skirmishes between the demonstrators and the AJK police caused anxiety for the premier on Sunday.

Speaking with Chaudhry Anwarul Haq, the prime minister of AJK, he said he also gave the office-bearers of the All-Pakistan Muslim League-Nawaz in AJK instructions to speak with the leaders of the Awami Action Committee.

Olive Branch is offered by AJK PM.

Prime Minister of Jammu and Kashmir Chaudhry Anwarul Haq stated on Sunday that his administration was ready to lessen the burden of exorbitant grain and energy costs.

Regarding Saturday’s meetings with the demonstrators, Prime Minister Haq declared, “We are determined to implement the agreement we have reached with the Awami Action Committee.”

Politicians, according to Haq, have found solutions to issues through discussion and “we are ready to talk with the Awami Action Committee at any level and the demands related to the government of Pakistan will be raised before the federation.”

In order to ease the burden of rising flour and power prices, he also expressed a willingness to modify the development budget if needed.

The AJK prime minister stated that his government’s first priority was ensuring public safety, and he further stated that no force was applied to the demonstrators.

Sub-inspector Adnan Qureshi was killed in a confrontation with demonstrators in Mirpur, and hundreds of people attended his funeral on Monday.

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Today’s National Assembly session is scheduled.

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The National Assembly (NA) will meet today (Monday) at the invitation of President Asif Ali Zardari.

At 4:00 p.m., the National Assembly will convene in the federal capital at Parliament House. The meeting’s agenda has been released by the assembly secretariat.

As per Article 54(1) of the Constitution of the Islamic Republic of Pakistan, the President has the authority to call a session of the National Assembly.

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