Current Final

Tag: electricity

  • Govt moves to cut circular debt amid power tariff relief

    Govt moves to cut circular debt amid power tariff relief

    The federal government remains locked in negotiations with commercial banks in a bid to reduce the power sector’s Rs2.4 trillion power circular debt, it has emerged.

    In discussions with the press, Minister for Power Sardar Awais Legahri announced that these discussions could unlock loans worth Rs1.34 trillion rupees, which would create some fiscal breathing room. He further said that agreements would only be finalised after commercial banks submit their term sheets.

    According to credible reports, this could allow for a staggering Rs300-335 billion reduction in the power sector’s circular debt.

    Authorities have revealed that the aforementioned loans will be financed via the debt servicing surcharge of Rs3.23 per unit. While the agreement stands under the current administration, reports have highlighted how repayments towards these loans will continue even if political power changes hands in the future.

    While the new loans will result in the aforementioned payments, lawmakers in Islamabad intend to reduce the financial strain on users of the national grid.

    Recently, Prime Minister (PM) Shehbaz Sharif slashed the power rate for residential and industrial zones by 12 percent and 13 percent, respectively, and Leghari has hinted at further cuts in electricity tariffs.

    As per reports, the fall in tariffs could be revised downward in June 2025, when tariffs are rebased. However, the minister has outlined how changes in fuel prices will have to be borne by consumers via fuel cost adjustment (FCA) charges.

    According to Leghari, a rise in interest rates or a fall in the value of the rupee could cause the quarterly tariff adjustment (QTA) to change. Moreover, if the procurement of fuel becomes expensive or if global energy prices rise, the FCA charges are likely to change.

    Aside from the aforementioned factors, reports suggest that a fall in hydropower generation could also be reflected within the FCA. Given how this news could have rattled users of the national grid, as many could believe that the recent reduction in electricity prices might be revoked in the future, he proclaimed that the recent slash in power rates was based on “solid and sustainable” factors.

    There is merit to his claim as the federal government has made great efforts in the recent past to end unfavorable contracts with independent power producers (IPPs). Moreover, Islamabad has also tacked on an additional Rs10 per liter petroleum development levy that, coupled with termination of contracts with IPPs, has allowed for a Rs4 per unit price reduction.

  • Jawad Ahmad’s wife’s beauty salon caught stealing electricity

    Jawad Ahmad’s wife’s beauty salon caught stealing electricity

    Singer Jawad Ahmad found himself in hot waters after his wife’s beauty salon was caught stealing electricity.


    LESCO officials discovered that the salon’s electric meter had been tampered with during a routine inspection in Lahore’s Johar Town. The phase wire had been cut off intentionally, a common tactic used to avoid paying for electricity.


    The story takes a dramatic turn when Jawad Ahmad reached the spot. As per the reports of LESCO officials, the Bin Tere Kia Hai Jeena singer reached the spot looking quite furious.

    The reports state that he beat the meter readers, and took away the tampered meter forcefully.
    After the incident, Jawad Ahmed left the scene with the meter and his wife. LESCO has reported the theft and submitted details of the tampered meter to higher authorities.


    A formal complaint has been lodged at Nawab Town Police Station against Jawad Ahmed for allegedly assaulting the staff and committing electricity theft. The LESCO staff claims that the singer himself removed the meter, and electricity to the premises has been disconnected as a result.

  • PPP leader Saeed Ghani terms Punjab govt’s relief in bills a ‘political stunt’

    PPP leader Saeed Ghani terms Punjab govt’s relief in bills a ‘political stunt’

    Sindh Minister for Local Government Saeed Ghani mocked the Punjab government’s recent move to give relief to the masses by reducing electricity prices for just two months, terming it a “political stunt.”

    He said this in response to Punjab’s government’s decision to provide relief to the public by rescuing Rs 14 per unit on electricity bills for two months (August and September).

    Ghani remarked that it was the federal government’s responsibility to provide people with cost-efficient electricity, saying, “Rs 45 billion are being expended for relief for two months only, while scores of relief works could be done with that Rs 45 billion.”

    “The question is what will happen after two months. The consumers will be paying the same [high] prices,” the PPP leader stated.

    Interestingly, Governor Sindh Kamran Tessori asked Chief Minister Murad Ali Shah on Sunday to announce a Punjab government-like relief in electricity bills.

  • ‘Good news’ coming soon on electricity prices: Shehbaz Sharif

    ‘Good news’ coming soon on electricity prices: Shehbaz Sharif

    Prime Minister Shehbaz Sharif said on Wednesday that he will give the nation “good news” regarding reduced electricity costs and a new economic reform plan.

    “Today, there is inflation. People are worried about electricity bills and other problems. However, if not all is good in the country, not all is bad,” said the PM.

    “Our primary focus is on reducing power prices to provide relief to domestic consumers, agriculture, industry, exports, and business sectors. This is essential to navigate the current economic challenges. The competitiveness of our exports is directly linked to affordable electricity,” stated the premiere in an address to newly appointed officials of power distribution companies (DISCOS) on Tuesday.

    He highlighted that the Special Investment Facilitation Council (SIFC) was committed to lowering energy costs, which have placed a significant burden on the debt-ridden nation.

    He pointed out DISCOS’s inefficiencies and corruption, which have led to power theft costing around Rs 500 billion annually.

    “This is your greatest challenge. The government has deliberated on how to improve the system. You must give your best,” the PM stated, stressing that DISCOS officials’ appointments have been made on merit.

  • Employees getting Rs 15 billion of free electricity: Secretary Power Division

    Employees getting Rs 15 billion of free electricity: Secretary Power Division

    The Senate’s Standing Committee on Energy has been briefed by the Secretary of Power Division that 190,000 employees are being given free electricity worth 15 billion rupees annually.

    He said, “Our electricity demand for industry is about 25 percent, decreasing over time.”

    The Secretary explained that 25 million employees of 400 units received a 592 billion subsidy, which has now increased by Rs 692 billion. “244 billion was taken from industry and given to domestic consumers,” he told the Committee.

    Senator Mohsin Aziz remarked, “IPP has become a dragon, and people are on the streets.”

    The federal minister for power and energy said, “Even if we get five rupees from IPP payments, we will help poor people.”

    The minister opined that electricity theft can be reduced with privatisation and digitisation.

  • No immediate relief in sight for high electricity costs, experts warn

    No immediate relief in sight for high electricity costs, experts warn

    Experts have little hope for a reduction in Pakistan’s high electricity prices. The government has turned electricity and petroleum products into revenue sources, and Independent Power Producers (IPPs) face no performance checks or contract revisions, they said, adding that it gives the generators unchecked freedom.

    Experts discussed the issues with DAWN at a seminar titled Pakistan Energy Crisis and IPPs: How Overbilling Impacts Quality of Life and Pathways to Solution, held at the Applied Economics Research Centre (AERC), University of Karachi on Thursday.

    Experts highlighted that over-billing and high electricity costs have become a crisis, adversely impacting poor and middle-income households. This crisis affects their spending on health, education, food, and transport.

    AERC Assistant Professor Dr. Aamir Siddiqui stated that electricity charges are unlikely to decrease soon because the government uses petrol and electricity as revenue sources. With around 100 IPPs and numerous suppliers in the country, electricity prices should at least be stable, but they continue to rise.

    He also noted that Pakistan generates more power than needed, yet load shedding persists. Despite this, the government is not addressing the quality and services of IPPs or revising their contracts, even though payments are made in dollars or equivalent exchange rates.

    Dr. Muhammad Saber, Principal Economist at the Social Policy and Development Center in Karachi, stated that electricity rates will not decrease until the government prioritises public welfare over its own interests. He pointed out that many contracts with IPPs were signed without considering public benefit, and even IPPs not supplying electricity receive timely and full payments.

    AERC Assistant Professor Dr. Fauzia Sohail mentioned that the residential sector is the largest consumer of electricity, followed by the industrial sector. Low and middle-income households are particularly affected by over-billing. Rising electricity charges force people to cut spending on essentials like health, education, food, transport, and housing. This not only adversely impacts these amenities but also drives some low-income individuals below the poverty line, especially in Karachi.

  • Over 1,500 booked after crackdown on electricity thieves in Matiari

    Over 1,500 booked after crackdown on electricity thieves in Matiari

    Hyderabad Electric Supply Company (HESCO) officials have filed 10 cases of electricity theft against over 1,500 individuals during a crackdown on electricity theft in Matiari.

    The cases have been registered at the Hala, New Saeedabad, and Matiari police stations, naming over 1,500 electricity thieves, Geo news reports.

    HESCO officials reveal that approximately 60 per cent of electricity is being stolen across the district. To address this issue, they have initiated a crackdown, registered cases in the first phase, and will begin making arrests in the next phase.

    Many citizens are unaware of the cases filed late at night by HESCO officials, but a significant number of individuals have been named in these cases.

    Hyderabad Electric Supply Company (HESCO) officials have filed 10 cases of electricity theft against over 1,500 individuals during a crackdown on electricity theft in Matiari.

  • Air conditioners are contributing in global warming: Experts

    Air conditioners are contributing in global warming: Experts

    Experts warn that air conditioners, primarily used to beat the heat and cool rooms, are contributing to global warming by heating up the environment and increasing temperatures.

    In cities where tree cover is decreasing, the number of air conditioners is rising.

    Ecologists from the University of Agriculture explain that while ACs cool indoor spaces, they simultaneously heat the outdoor environment, leading to higher temperatures.

    ACs can raise outdoor temperatures by as much as 60 to 80 degrees Celsius in extreme conditions and has reportedly caused temperatures to rise by half a degree Celsius over the past century.

    Experts further warn that continued proliferation of air conditioners to cool environments could irreversibly damage natural ecosystems.

    Instead of disregarding environmental warnings, experts urge increasing urban tree cover as a sustainable alternative to cooling the environment without exacerbating global warming.

  • One lakh KP families to get free solar from govt

    One lakh KP families to get free solar from govt

    The Khyber Pakhtunkhwa government has decided to provide free solar systems to one lakh families across the province.

    Chief Minister Ali Amin Gandapur has instructed officials to provide solar systems to impoverished families experiencing load shedding in the province. Under this initiative, each eligible family in Pakhtunkhwa will receive a 2 KV solar system.

    These include solar panels, inverters, wiring equipment, bulbs, and fans.

  • Consumers not receiving electricity units at basic rate: Court hears petition

    Consumers not receiving electricity units at basic rate: Court hears petition

    The Lahore High Court has issued a written order for the previous hearing of a petition filed against the imposition of protective and non-protective tariffs on electricity consumers.

    The Supreme Court ordered the public prosecutor to appear with instructions at the next hearing.

    The written order said that according to the petitioner, tariffs related to electricity units have been imposed on the consumers.

    In the written order of the Lahore High Court, it has been said that according to the petitioner, electricity units are not being given to consumers as per the basic rate.

    Yesterday, the Lahore High Court issued a notice to National Electric Power Regulatory Authority (NEPRA) on the petition against the exorbitant increase in the electricity bills of more than 200 units on the basis of protective and non-protective tariffs and sought its response at the next hearing.

    Justice Risal Hasan Syed further questioned on what basis the prices of electricity have been increased.