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Saturday, 22 June, 2024 I |15 Zil-Hajj, 1445
Rs 20.00 | Vol XIV No 351 I 8 Pages I Islamabad Edition
PM ORDERS FORENSIC AUDIT OF POWER DISCOS OVER OVERBILLING, MDI MANIPULATION
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DIRECTS POWER DIVISION TO PREPARE A SUMMARY FOR BIFURCATION OF NTDC INTO PTIDC, NATIONAL TRANSMISSION MANAGEMENT COMPANY AFTER DUE DILIGENCE
Nepra introduces new fixed charges in electricity tariff for all consumer categories
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RIME Minister Shehbaz Sharif has directed the Power Division to initiate a forensic audit and inquiry into the issue of overbilling by power distribution companies (Discos) and the manipulation of Maximum Demand Indication (MDI) by the industrial sector. According to a news report, these directives were issued during a meeting addressing load shedding, power theft, power tariffs, and the restructuring of the power transmission system. According to the National Electric Power Regulatory Authority (NEPRA), certain consumer categories do not have their actual load/MDI recorded. Discos have suggested using either a fixed charge per connection or kilowatt of sanctioned load for recovery of fixed charges for these consumers. NEPRA has decided to initially impose fixed charges at a fixed rate per month for such consumers, as outlined in the Schedule of Tariffs (SoT). NEPRA has instructed that by the next tariff petition adjustment request, MDI for all consumers at all levels should be properly recorded. To minimize the impact of increased fixed charges on these consumers, their variable rate (Rs/kWh) has been adjusted accordingly. The meeting also discussed the delay in bill payments amounting to hundreds of billions of rupees by federal and provincial governments. The Power Division highlighted that the non-payment of bills by the public sector is exacerbating the already troubled power sector’s financial situation. A plan for implementing technological interventions such as transformers and smart metering will be submitted
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for consideration at the next meeting. The meeting also reviewed the status of the National Transmission and Despatch Company (NTDC) and the progress on its restructuring and winding up. A committee comprising the Minister for Economic Affairs, Ahad Khan Cheema, the Minister for Power, Sardar Awais Ahmed Khan Leghari, and former MD NTDC Dr Faiz Ahmad Chaudhry has been formed to finalise the recommendations for the winding up of NTDC. The Prime Minister has directed the Power Division to prepare a summary for the bifurcation of NTDC into the Pakistan Transmission and Dispatch Company (PTIDC) and the National Transmission Management Company (NTMC) after due diligence. Additionally, the Central Power Purchasing Agency (CPPA-G) and the National Power Control Center (NPCC) will be restructured to create an Independent System and Market Operator (ISMO).
The National Electric Power Regulatory Authority (Nepra) has introduced a new electricity tariff structure which includes fixed monthly charges for all consumer categories effective from July 1, 2024. The News reported that Nepra has also increased fixed charges by up to 300% for commercial consumers and up to 355% for industrial consumers. These changes are aimed at helping distribution companies (Discos) boost revenue through fixed charges. For residential consumers, those using 301-400 units per month will pay Rs200, 401-500 units will pay Rs400, 501-600 units will pay Rs600, 601-700 units will pay Rs800, and those using above 700 units will pay Rs1,000 per month. Residential consumers with timeof-use (ToU) meters will also pay Rs1,000 in fixed charges monthly. As per report, commercial consumers with a load less than 5kW will pay Rs1,000 per month, while those with a load of 5kW and above will now pay Rs2,000, up from the previous Rs500, reflecting a 300% increase. For industrial consumers in the B1 category (using up to 25kW under ToU metering), the fixed
charge will be Rs1,000. B2 category consumers (using up to 500kW) will see a 300% increase, paying Rs2,000 instead of Rs500 per month. B3 category consumers (using 5,000kW) will experience a 335% increase, paying Rs2,000 instead of Rs460 per month. B4 category consumers (all loads) will also see a 355% increase, with fixed charges rising to Rs2,000 from Rs440. Currently, the cost structure of electricity comprises 72% fixed charges and 28% variable charges, but fixed charges only contribute 2% to revenue, with variable charges making up 98%. This discrepancy has prompted the new tariff design to better align cost and revenue structures. The government is set to submit a petition to Nepra seeking a uniform tariff for FY25. Nepra has determined an increase in the base tariff for FY25 at Rs5.72 per unit. The proposed changes in fixed charges are part of this petition. With the revised base tariff, the power sector, managed by the government, expects to generate over Rs3.763 trillion in revenue for FY25. For FY24, the base tariff was set at Rs29.78 per unit with an increase of Rs4.96 per unit. The new base tariff for FY25 is expected to rise to Rs35.50 per unit.
Amid PTI’s protest call, Punjab imposes Section 144 for seven days LAHORE
STAFF REPORT
Ahead of the PTI’s planned nationwide protests, the Punjab government on Friday imposed Section 144 in view of the “prevailing law and order situation”, banning all kind of protests and public gatherings across the province. The imposition of Section 144 in Punjab coincides with the PTI’s plans to carry out nationwide protests on Friday to press the demand for the release of incarcerated leader Imran Khan. According to an order issued by the Home Department, Section 144 has been imposed with immediate effect and will remain in effect for seven days. The Punjab Police say that Section 144 empowers authorities to issue orders in the public interest that may place a ban on an activity for a specific period. The order states: “It has been observed that given the prevailing law and order situation and security threats, any gathering/ assembly is likely to provide soft targets to terrorists and miscreants, which not only pose serious security threats but is also likely to cause threat
to public at peace and order as well as inconvenience to public at large.” Although the notification fell short of mentioning a specific reason for the imposition of Section 144, Home Secretary Noorul Amin Mengal wrote in the order
that “pressing and adequate grounds exist for proceeding under Section 144 as an immediate prevention and speedy remedy to ban forthwith certain activities in Punjab”. Assemblies, gatherings, sit-ins, rallies, processions, demonstrations, jal-
sas, dharnas, protests and other such activities have been prohibited effective immediately, the order stated. According to one post on social media platform X, “multiple illegal police raids” were conducted on the houses of PTI leaders in Khanewal. The party also claimed that the office of PTI leader PP-209 Khanewal Humayun Khan was raided and ransacked by the police. Speaking in the National Assembly, Leader of the Opposition Omar Ayub condemned the imposition of Section 144 and asked NA Deputy Speaker Ghulam Mustafa Shah to rule that the ban was a constitutional violation. Condemning the ban, PTI spokesperson Raoof Hasan described it as “a shameful act on the part of the entire form 47 criminal government”. Posting on X, he claimed that imposing Section 144 demonstrated how “mortified” the government was of Imran, adding that it would only spur the drive of the party founder’s followers. “Imran Khan will triumph. People will triumph. Pakistan will triumph. Nothing can stop their momentum to realise their dream,” Hasan added.
WB approves $535m for Pakistan ISLAMABAD
NEWS DESK
The World Bank’s (WB) Board of Executive Directors approved $535 million in financing for Pakistan to support two projects, a statement from the institution said Friday. The additional financing for the Crisis Resilient Social Protection (CRISP) Programme aims to strengthen the country’s social protection system and build shock resilience among poor and vulnerable households. At the same time, the Sindh Livestock and Aquaculture Sectors Transformation (LIVAQUA) Project will promote climate-smart and competitive small and medium producers in the livestock and aquaculture sectors in Sindh. “The catastrophic floods that hit Pakistan in 2022 were a tragic reminder of the importance to build resilience to such disasters, including by strengthening both social protection and sectors that support economic growth and recovery,” said Najy Benhassine, World Bank Country Director for Pakistan. “It is also imperative to help the vulnerable absorb climate shocks through innovative climate-smart technology and contingency planning.” The additional financing for CRISP ($400 million) will build on the programme’s ongoing efforts to equip Pakistan’s social protection system with the policy and delivery system foundations necessary for more effective and rapid responses to future crises. The programme will focus on longer-term policy actions to further improve the national cash transfer program’s effectiveness, coverage and federalprovincial coordination. “Since its inception, the CRISP program has achieved significant results with regular safety net support to more than 9 million families and a demonstrated capability of quickly reaching 2.8 million families during the recent floods,” said Amjad Zafar Khan, Task Team Leader for the Project. “The additional financing would not only assist families in becoming more resilient to climate and economic shocks but also encourage the use of provincial capacities to take up a larger role in social assistance. LIVAQUA ($135 million) will finance interventions to promote climate-smart production, value addition, and inclusive access to markets, and help create opportunities for growth in the livestock and aquaculture sectors. These will include improving sector policy and strategic frameworks, as well as evidence-based decision-making. It will also contribute to strengthening the capacity of public and private providers to deliver essential knowledge, inputs, and services such as disease surveillance and control, diagnostic laboratory services, breeding programs, food safety, and the development and transfer of green technologies. LIVAQUA will cover all districts in Sindh using a phased approach. It is expected to directly benefit more than 940,000 farm families, including 930,000 livestock households and 10,000 aquaculture producers. The project also includes measures to ensure female farmers’ participation in the project and narrow gender gaps. “The project will improve the livelihoods of small and medium livestock and aquaculture producers, increase their resilience to animal health and climaterelated shocks, strengthen the overall growth of these two sectors in Sindh, and more broadly improve food and nutrition security and reduce the sector’s contribution to greenhouse gas emissions,” said Myriam Chaudron, Task Team Leader for the project.
Politicians show rare unity over CPEC as China urges internal stability for Pakistan’s development ISLAMABAD
MIAN ABRAR
A senior Chinese minister on Friday urged Pakistan’s political leadership to uphold unity and shun differences as “internal stability is imperative for any nation to develop”, saying that Pakistan is China’s “iron brother and time-tested friend” and China accorded a special place to Pakistan in its foreign policy and desired to strengthen the all-weather strategic cooperative partnership. “In a turbulent world of rising uncertainties, stability within the country is essential for development. Faced with complex internal and external challenges, Pakistan is navigating carefully through turbulent rivers,” Minister of the International Department of the Communist Party of China (IDCPC) Liu Jianchao said as he co-chaired the third meeting of the Pakistan-China Joint Consultative Mechanism (JCM) of the Political Parties on the CPEC alongside Foreign Minister Ishaq Dar. This is the second time with a year China has publicly warned Pakistan against threats of internal split and instability as political discord and polarisation keep hurting Pakistan. It was former Chinese foreign minister Qin Gang on May 6, 2023 had advised Pakistan to uphold unity and bring in stabil-
ity to meet rising challenges. “We sincerely hope the political forces in Pakistan will build consensus, uphold stability and more effectively address domestic and external challenges so it can focus on growing the economy,” Qin had said, addressing a press briefing alongside his then Pakistani counterpart, Bilawal Bhutto Zardari, after the closed-door strategic talks. Leaders belonging to all major political parties, including the Pakistan Tehreek-eInsaf (PTI), Pakistan Muslim League-Nawaz (PML-N), Pakistan Peoples Party (PPP), were present during the event. PTI’s Barrister Ali Zafar and Raoof Hasan, PML-N’s Ahsan Iqbal, Jamiat Ulema-e-Islam’s Emir Fazlur Rehman, Muttahida Qaumi Movement-Pakistan’s Khalid Maqbool Siddiqui, and other top leaders were in attendance. The Chinese official said that there can be sustainable development only when all political parties in a country join hands to ensure political and social stability. “And for all these years, China has always been striving hard to maintain a good balance of reform, development, and stability — each of the three fundamentals is indispensable.” The minister noted that over the years, CPEC has boosted Pakistan’s economic and
social development. However, he said that more efforts need to be made, especially when it comes to security. “We are ready to build the upgraded version of CPEC […] we need to improve security and business environment. Security threats are the main hazards disturbing CPEC cooperation,” he highlighted. In the case of Pakistan, he said, the primary factor shaking the confidence of Chi-
nese investors is the security situation. “Without security, the business environment cannot really improve, which can undermine development in the long run.” At the same time, he also appreciated the Pakistani security forces for their services in this regard. Moving on, the senior official said that due to the wholehearted support of the people of both nations, Pakistan and China have become “iron friends”. “Public support is the
bedrock of the China-Pakistan relationship.” However, voicing fears, he said that the mutual affinity between the people of the countries is still not commensurate with the iron-clad friendship of the countries. “In particular, there’s a rising risk of Western social media which has a huge impact on the younger generation, eroding the foundation of the China-Pakistan friendship,” Liu Jianchao said. He said the Chinese government was ready to promote exchanges between the youth, media, think tanks, academics, and local governments, and help the public understand the friendship better. He said the determination of both countries’ leaderships sent a clear message to the world that the China-Pakistan friendship was unbreakable. He said Pakistan’s government introduced 5Es to focus on five key areas presenting an important opportunity for two peoples to work together to promote the community of shared destiny. Calling party-to-party relations an integral part of bilateral relations, it was high time the parties contributed their wisdom to turn the blueprint into reality by understanding each other’s development philosophy.
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