LESCO Tariff for 2021 | Electricity Unit Rates in Pakistan

Each time, when people are confronted with any difficulties that may arise in the supply of water and electricity supply, they are always there to criticize Wapda, as it is responsible for both of these sectors. For the development of the country, the distribution, transmission, and generation of electricity and water are under the control of Wapda. It does not manage Thermal power, but it is also in charge of the water supply and hydroelectric power plants in the country, with the exception of Azad Kashmir and Karachi. The electricity is being supplied to Karachi by K-Electric.

LESCO Tariff for 2021 | Electricity Unit Rates in Pakistan

LESCO TariffAccording to the Pakistan Economic Survey for 2019-2020, the installed electric capacity will be reached 37,402 MW by the year 2020. The total demands of the residential and industrial areas and are about 25,000 MW, while the power and capacity to be set up at 22,000 MW. This will lead to a loss of about 3,000 MW and if the demand is rising exponentially. An additional 3,000 MW, and may not be transmitted to the general public, although the high demand for electricity in the country is far below the installed capacity of 37,402MW

Recent changes are merging the companies in the department of Water and Energy Development into ten regional distribution companies, four thermal power companies, and a transmission company, the national transmission and dispatch company. The power plants were maintained by WAPDA as WAPDA Hydroelectric power.

All of them are entirely owned by the federal government. K-Electric Limited Company, responsible for the production and distribution of electricity in the Karachi area, has been listed on the stock exchange and owned by private individuals. Independent power producers produce 53% of the country’s electricity. Tarbela Dam, Mangla Dam, the two of Wapda’s biggest projects for the production of electricity, also play an important role in the country’s power supply.

Conclusion
In 1947, after the Indo-Pak separation, the two countries had been divided into independent countries. The irrigation system was also divided at the same time, which ended up in a water dispute between the two countries. A treaty was signed at the confluence of the Indus, in which the three eastern rivers were taken into account under the administrative control of India, and the Pakistani government took the control of three western rivers. At the time of independence, Pakistan had a capacity of 60 MW of power generation to compensate the 3.15 million people. For such a large community, 60MV power was not sufficient.

For almost twelve years, the management of power and water was controlled by the electric and irrigation department of the provinces. In 1958, after the existence of WAPDA, it increased the power capacity to 119MW, and it was a great achievement for the government and society in general.

In the early 1960s, along with the rapid growth of the population, electricity production became a complete necessity. Therefore, Wapda took the first step in the form of the first hydroelectric power and thermal energy project in order to meet the growing demand for electricity. In the blink of an eye, Wapda has increased by 119MW to 636MW, and it was still not enough.

In the 1970s, with the rapid success, in particular thermal power plants and the introduction of the Mangla Dam in the energy, Wapda was able to produce a power generation capacity of approximately 1,331 MW

The most qualified civil servants of the country were controlling the water and power development authority. Ghulam Ishaq Khan was the first chairman of Wapda and has played an important role in the construction and development of the Mangla and Warsak Dam. Aftab Ghulam NabiKazi was a Pakistani bureaucrat who is a huge contributor to the completion of the Mangla dam. Ghulam Farooqi Khan was a politician and businessman, and he struggled to establish WAPDA.

Since October 2007, Wapda has been restructured and split into two companies: WAPDA (Water and Power Development Authority and PEPCO(Pakistan Electric Power Company).

After that, the WAPDA was assigned to monitor and manage all the affairs related to Dams. The Development, Transmission, and Distribution, and Regulation of Water and Energy and was under the control of Wapda. Thermal power was disconnected from WAPDA.

Pepco is now responsible for the power generation transfer and billing information. Pepco is working with fourteen limited companies of Wapda, in relation to the thermal energy, which is 4 COMPANIES GENCO, 1 is a National Company, with the Transmission and Distribution of electric power(NTDC), nine other companies are  LESCO, FESCO, GERRESHEIMER, PESCO, IESCO, HESCO, QESCO. SEPCO)

LESCO stands for Lahore Electrical Company is the best company responsible for the distribution of electricity in multiple districts such as Lahore, Okara, Sheikhupura, Nankana, and Kasur, where it provides electricity.

LESCO works under the central organization of the Water and Power Development Authority (WAPDA). LESCO was established in 2001 as a result of the unbundling of the WAPDA structure, formerly known as the Lahore Area Electricity Board (AEB). The circulation of LESCO includes sixty-eight 132-kV and fourteen 66KV sub-stations. In 2013-14, there were one thirty-four 132 kV and seven (66 kW) substations.

OPERATIONAL AREAS OF LESCO

LESCO distributes electricity to the below-mentioned districts:

  • Lahore
  • Okara
  • Sheikhupura
  • Nankana
  • Kasur

Types of Connections LESCO Provides

LESCO has a wide range of compounds shown below, depending on your needs:

  • In-house
  • Commercial
  • Industrial
  • Agriculture
  • Tube Well
  • Temporary
  • General services
  • Residential Colonies
  • Street lights

LESCO, ELECTRICITY TARIFF (RATE) 

Depending on the needs of the customer, LESCO offers variable connections at different prices in the form of LESCO and electricity tariffs. LESCO offers its customers the very best tariff connections that make it possible for them to use electricity in sufficient quantities at certain rates.

The LESCO electricity rate depends on the consumer’s consumption of electric energy. The account of the customer is changing, depending on their needs and requirements. Industrial consumers have to pay more prices since they consume more energy for a longer period of time than the national standard.

We are here to tell you about various LESCO electricity rates, prices, and another period. After reading the article, you will be able to correct any errors in your electricity bill.

What are LESCO Peak Hours?

You can control your consumption of electricity if you are aware of the peak hours. Suppose there is a high demand for electricity. At the peak time, LESCO can give you more electricity rates. So, you can save energy from 5 pm to 11 pm. The dates can vary from month to month. Take a look and get information about that specific time.

 Below mentioned are the timings of LESCO peak and off-peak hours From December to February, peak hours are from 5 pm to 9 pm. From March to May and from September to November, peak hours are from 6 pm to 10 pm. From June to August, the duration of the peak hours is from 7 pm to 11 pm. You can consider the remaining 20 hours as off-peak hours. 

WHAT ARE THE TYPES OF LESCO TARIFFS?

According to the demands of the consumers, LESKO offers a variety of rates. There are many different types of tariffs with different names. The client may choose one of the types of connection rates. So, it can be installed according to the requirements of our customers.

Also Checkout:  Check LESCO Bill Online

Types of LESCO, Electrical Energy Rates.

Domestic, commercial, industrial, general, etc

What is the cost of electricity per unit?

Along with the rising prices of everything, LESCO is giving better prices for the consumer.

At the domestic level, the price is up to 100 units is very less and affordable for customers. After the consumption of 100units, the price per unit may change. There is a slight difference in the price.

The cost of domestic level electricity consumption is given below

  • The First 100 units cost is Rs -12.90 / unit
  • After the consumption of 100 units, the cost becomes Rs 13.54 / unit

LESCO Electricity Tariff 2021

Each fare has its own rates according to the phases of the project. In this article, the electricity tariffs are given in detail. The rate will be dependent on the phase of the meter. As per your tariff phase, the rates will be specified.

  1. TARIFF A-1

In A-1 there is the variable cost for the allowable load less than 5 kW, and if the load is above, then that will depend on the units used.

For the consumption of up to 50 units

  • Nepra, the variable cost per kilowatt-hour 4Rs,
  • The applicable cost is 2Rs
  • Uniform electricity tariff variable cost is 4Rs/Kwh

For the first 100 units

  • The Nepra charge Rs12.09 per kilowatt-hour
  • The applicable cost is Rs 5.79.
  • Uniform electricity tariff variable cost is 13.85Rs/Kwh

From 101 to 200 of the units:

  • Nepra, the variable cost per kilowatt-hour 13.54Rs,
  • The applicable cost is 8.11Rs
  • Uniform electricity tariff variable cost is 15.86Rs/Kwh

From 201 to 300 units

  • The Nepra charge Rs15.27 per kilowatt-hour
  • The applicable Cost is Rs 10.20Rs.
  • Uniform electricity tariff variable cost is 16.85Rs/Kwh

From 301 to 700 Units

  • The Nepra charge Rs16.91.27 per kilowatt-hour
  • The applicable Cost is Rs 17.60Rs.
  • Uniform electricity tariff variable cost is 18.54Rs/Kwh

With more than 700 units:

  • For the consumption of more than 700 units, the variable cost will be 20.94Rs/Kwh
  • Nepra, with variable costs, is 19.24 Sm/kWh.
  • The applicable cost is 20.70 Rs

Peak and off-peak cost

  • Uniform-peak rates are19.33Rs and off-peak are 12.80Rs
  • Applicable rates on peak timings are 20.70Rs, and off-peak timings are 14-38Rs.
  • The cost on peak timing from Neprs are 18.81Rs, and off-peak are 12.5Rs
 NOTE: Even if there is no electricity, the minimum monthly charge shall be calculated on the basis of the following exchange rates: Single-phase electrical connections: Rs 75/- per consumer per month Three-phase electrical connection: Rs 150/- per consumer per month 
  1. A2 GENERAL DELIVERY LESCO ELECTRICITY TARIFF COMMERCIAL.

Fixed Costs:

The fixed cost for the total supply is 400RPS / kW / M, with the use of an electrical load of 5 kW or more.

Uniform tariff, variable costs:

  • if the sanctioned load is less than 5 kW, then LESCO will charge 19.26 /kWh
  • The payable cost for the sanctioned load of 5 kW and above is 18.01
  • During peak times, rates of units increase to 20.09, and off-peak charges Rs 13.48Rs / kWh.

Nepra Variable Cost.

  • if the sanctioned load is less than 5 kW, then LESCO will charge 19.08Rs /kWh
  • The payable cost for the sanctioned load of 5 kW and above is 16.81Rs/KWh
  • During peak times, rates of units are 19.18Rs, and off-peak charges Rs 12.26Rs / kWh.

Applicable cost

  • If the sanctioned load is less than 5 kW, then LESCO will charge 18Rs /kWh
  • The payable cost for the sanctioned load of 5 kW and above is 19.68Rs/KWh
  • During peak times, rates of units are 21.6Rs, and off-peak charges Rs 15.63Rs / kWh.
 NOTE: If there will be no consumption of electricity under LESCO Tariff A-2 there shall be minimum monthly charges for every customer Single-phase electrical connections: Rs 175 / – per customer, per month Three phase electric connection: Rs 350 / – per customer, per month 
  1. A3- GENERAL SERVICES

LESCO provides general variable costs are Rs 17.56 / kWh.

 NOTE: According to the A-3 rate, the minimum monthly charge shall be calculated on the basis of the following fees will be charged even if there is no power. Single-phase electrical connections: Rs 175 / – per customer, per month Three-phase current connection: Rs 350 / – per customer, per month 
  1. INDUSTRIAL SUPPLY RATE

Fixed costs:

  • Fixed rates for the industrial tariff B2 at from 400volts to 25-500 KWare 400Rs/KW/M
  • All devices are up to 5000KW, at an operating voltage of 11.33 CV, fixed cost will be applied 380Rs/KW/M
  • if the load is up to at the voltage of 66.132 KW then there will be fixed charges of 360Rs/KW/M applied.
  • Uniform variable Cost
  • At 400/230 V, charges can vary, from 18.32Rs / kWh up to 25 kW.
  • From 25 and up to and including 500 kW, the cost is 15.79 Rs /kWh at the usage of 400Volts

Variable Charges of NEPRA

  • Up to 25 kW, electricity consumption charges will be 17.59 Rs /KWh at the voltage of 400/230.
  • From25 to 500 kW, the charges will be 14.95 Rs / KWh at the voltage of 400.

Applicable Cost.

  • Up to 25 kW, the charges of electricity consumption will be 15.28 Rs /KWh at the voltage of 400/230.
  • From 25 to 500 kW, the charges will be 14.78 Rs / KWh at the voltage of 400.

Charges on Peak Hours

  • Up to the consumption of 25 kW, the uniform charges at the peak timing will be 20.14Rs/kWh, Nepra-variable costs are 19.98 Rs/kWh, and its applicable cost is 18.84Rs/kWh.
  • From 25 to 500, with an operating voltage of 400 V, the Nepra variable charges will be 19.35Rs/kWh, and the applicable charges will be 18.75Rs.
  • For all of the load consumptions up to 5000 kW at a voltage of 11.33 KW, the homogeneous and variable costs are 20.39 Rs/KWh, Nepra, with variable costs, are 20.25Rs/KWh, and the applicable charges will be 18.78Rs/KWh.
  • For all the load consumption up to 66.132KV, consistent and variable charges during peak hours are 20.27 Rs/KWh, Nepra-variable costs are 20.25 Rs/kWh, and the applicable cost is 18.78 Rs/KWh.

Charges on Off-Peak Hours

  • Up to the consumption of 25 kW, the uniform charges at the off-peak timing will be 13.46Rs/kWh, Nepra-variable costs is 12.03Rs/kWh, and its applicable cost is 13.28Rs/kWh.
  • From 25 to 500, with an operating voltage of 400 V, the Nepra uniform variable charges will be 13.23Rs/kWh, and the applicable charges will be 13.07Rs.
  • For all of the load consumptions up to 5000 kW at a voltage of 11.33 KV, the homogeneous and variable costs are 12.61Rs/KWh, Nepra, with variable costs, are 11.61Rs/KWh, and the applicable charges will be 12.98Rs/KWh.
  • For all the load consumption up to 66.132KV, consistent and variable charges during peak hours are 13.25Rs/KWh, Nepra-variable costs are 12Rs/kWh, and the applicable cost is 12.88Rs/KWh.
Note
Industrial LESCO provides the electricity rate, which is determined by the minimum cost because the consumption and time of consumption is high There are some fixed minimum rates are as follows: For B1-to-consumer, there is a fixed minimum charge of Rs 350 per month For B2, consumers pay a fixed minimum charge of Rs 2,000 per month. For B3, customers pay a fixed minimum charge of Rs 50,000 per month. For B4 customers, there will be minimum charges of Rs 500,000 per month
  1. SINGLE-POINT DELIVERY FOR PURCHASE IN BULK BY A DISTRIBUTION LICENSE AND MIXED LOAD CUSTOMERS NOT IN ANY OTHER CONSUMER CLASS

Uniform Charges Includes:

  • A charge for the maximum permitted load of less than 5 kW up to 500 kW are 21.32, and
    13Rs/KWh at 400/230 V.
  • Uniform charges will be applied at the consumption of up to 5000 kW at 11.33KV are 15.61Rs/KWh
  • If the sanctioned load is exceeding 5000 kW and 66 KW, the cost will be 14.42 Sm/kWh.
Also Checkout:  LESCO Bill Calculator

Applicable Cost

  • The applied charges for the sanctioned load less than 5 kW up to 500 kW, are 18.68 Rs and 18.18Rs/kW at 400/230 V.
  • Nepra’s variable cost for the consumption of up to 5000 kW at 11.33KV is RS 17.98 per kWh.
  • if the sanctioned load is more than 5,000 kW at 66 KW, the charge is Rs 17.88 per kWh.

NEPRA variable cost

  • The applied charges for the sanctioned load less than 5 kW up to 500 kW, are 16.2 Rs and 15.7Rs/kW at 400/230 V.
  • Nepra’s Variable Cost for the consumption of up to 5000 kW at 11.33KV, is RS 15.21Rs per kWh.
  • if the sanctioned load is more than 5,000 kW at 66 KW, the cost will be Rs 13.97 per kWh.

Cost during peak hours:

  • If the sanctioned load is less than 5 kW up to 500 kW of uniform and variable cost during peak hours,
    are 21.52Rs/KWh
  • During peak times, uniform variable cost up to the consumption of 5000 kW at 11.33KV is 19.73Rs/KWh
  • if the consumption of the sanctioned load is more than 5000KW at 66KV, the cost will be 18.49Rs/KWh
  • On the peak timings, variable and applicable charges will be 21.6 and 19Rs/KWh

Cost during the Off-Peak hours

  • If the sanctioned load is less than 5 kW up to 500 kW of uniform and variable cost during off-peak hours is 14.99Rs/KWh nepra will take variable charges 12.5Rs, and applicable charges will be 15Rs.
  • During off-peak times uniform variable cost up to the consumption of 5000 kW at 11.33KV is 12.75RsRs/KWh, nepra will take variable charges 12.1Rs, and applicable charges will be 14.8Rs
  • if the consumption of the sanctioned load is more than 5000KW at 66KV the cost will be 11.59Rs/KWh
  • On the offpeak timings, variable and applicable charges will be 12Rs and 14.7Rs/KWh
  1. D- AGRICULTURE ELECTRICITY TARIFF

Fixed costs:

  • The fixed costs in the agricultural sector and scarp 5 kW, and higher than that of agriculture, tube well are 200Rs/KW.M

Uniform Cost

  • The uniform cost for the scarp if the consumption is less than 5KW will be 23.17Rs, and for the agriculture tube well, it will be 14.56Rs.

Applicable Cost

  • If the scarp is less than 5Kw then the applicable cost will be 15.68Rs, and for the agriculture tube well, the cost will be 5.35Rs.

 Cost at the peak hours

  • If the scarp is 5KW and above, then the uniform cost on the peak hours will be 20.87Rs
  • *For the agriculture uniform cost will be on peak hours will be 20.27Rs. The variable Cost of Nepra will be 20.5, and the applicable cost will be 5.35Rs.

Cost at Off-Peak Hours

  • If the scarp is 5KW and more than that, then the off-peak rate will be 14.03Rs. The variable charges will be 12.02, and the applicable cost will be 11.35Rs.
  • For agriculture, the uniform cost on the peak hours will be 13.04Rs Nepra variable charges will be 13.46Rs, and the applicable cost will be 5.35Rs.
 NOTE: Among these, LESCO electricity rates, the minimum monthly electricity charges of Rs 2,000 per client, per month, even if there is no power. 
  1. E-TEMPORARY SUPPLY TARIFF

Applicable and uniform rates are the same as the temporal distribution of electricity.

Residential Temporal Supply of Electricity

Uniform Cost and applicable Cost will be 20.84Rs, and Nepra variable cost will be 18.15Rs.

For Commercial Supply of Electricity:

Uniform and applicable cost will be 18.39Rs, and Nepra variable cost will be 18.47Rs

For Temporal Industrial Supply of Electricity:

Uniform and applicable costs will be 16.36Rs, and Nepra variable costs will be 14.70Rs.

Note: For any of the categories (E-1 and E-II the minimum consumer’s cost will be Rs 50 per day, with a minimum amount of Rs 500 / – for the period as a whole, even if there is no power consumed.

  1. F- SEASONAL INDUSTRIAL SUPPLY TARIFF

This is 125% of the relevant Industrial Tariff.

Note
Tariff F is seasonal industrial supplies, and consumers will be able to switch back to the regular rate and vice-versa. This is an option that can be implemented in a new connection at the very beginning of the season.
  1. G-STREET LIGHTS

For the lighting of streets, for the uniform rates 18.78 Sm/kWh. The applicable cost will be Rs 18.68 / kWh, and the Nepra’s variable cost will be 19.78 per kWh

 NOTE: Under Tariff G, there will be a minimum Cost of Rs.500 per month per KW. 

 10.H- RESIDENTIAL COLONIES ATTACHED TO INDUSTRIAL PREMISES

All applicable charges for residential colonies are confirmed for the industrial buildings of Rs 18.68 per kilowatt-hour. A non-compulsory uniform rate, 20.39 Sm/kWh, and 18.42 Sm/kWh.

  1. I-RAILWAY TRACTION

Railway traction the uniform and nepra variable cost will be 17.9Rs, and applicable cost will be 18.68Rs. 12.  J-SPECIAL CONTRACTS UNDER NEPRA

Uniform and variable cost

  • is the sanctioned load is above 20MV, and more than that for the supply of 66 KV and more than this uniform cost will be 16.14Rs.
  • The uniform Variable cost for the supply will be 11.33KV 16.46Rs.
  • For the power supply of 66 kV and above, a uniform cost will be 16.36 Sm/kWh

Nepra variable Cost

  • Is the sanctioned load of 20MV and above, and the supply of 66KV & above nepra cost will be 11.75Rs. Nepra variable cost for the supply of 11.33KV will be 14.1Rs.
  • For the power supply of 66 kV and above, the Nepra cost will be14Rs / kWh
Also Checkout:  LESCO Email Service - Customer Support

Applicable Cost

  • If the sanctioned load is 20MW and above for the supply of 66KV and above, the applicable cost will be 17.88Rs.
  • The applicable variable cost for the supply at 11.33KV will be 17.98Rs.
  • For the power supply of 66 kV and above, the amounts shall be 17.88 Sm/kWh

Cost at the Peak Hours

  • Uniform-peak rates for all Rs 20.66 / kWh
  • Nepra’s peak and variable costs are Rs 18.60 / kWh
  • The appropriate cost will be Rs 21.60 / kWh

Cost at the Off-Peak Hours

  • If the sanctioned loaf is 20MW and above for the supply of 66 KV and above, then the uniform cost will be 14.33Rs. NEPRA variable cost will be 11.62, and applicable cost will be 14.70Rs
  • The uniform off-peak variable cost for the supply of 11,33KV will be 14.4Rs, and NEPRA Variable charges will be 11.27Rs, and the applicable cost will be 14.80Rs.

 

  • Note
    Neelum Jhelum surcharge of Rs 0.10 per kWh for all electricity consumers, except domestic consumers of category “Residential –A Electricity Sold. ” A surcharge of financial Cost at the rate of Rs 0.43 per kWh and applies to all categories of electricity consumers, except for the customers of the domestic category.

Reducing Electricity Tariffs

Pakistan’s electricity prices are 50-100 percent higher in the region and in some cases, higher. India benefits from cheap local coal. Pakistani Thar coal is, unfortunately, more expensive than imported coal and is twice as expensive compared to the same lignite elsewhere in India. However, India’s energy sector is facing problems similar to those in Pakistan – high T&D losses include 20 percent theft debts old GENCOs do not work well with troubled goods. Poverty is a common cause.

Unlike Pakistan, electricity prices vary widely throughout India, where every province has an independent power system, from the regulator to financial and credit ownership. Comparisons with Gujarat are worthwhile from many angles: they are geographically intertwined, fabric textile, and a progressive and prosperous province.

Most Indian tax labs vary between IRs4 IRs5 per kWh, which translates to Rs8-9 per kWh. Lesco taxes likewise vary between Rs16 and Rs18 per kWh. We can clearly conclude that, in total, Lesco’s (Pakistan) electricity tax is about 1.5 to 2 times or, in some cases, twice that of India.

Malaysia has the lowest tariffs on 6 USC domestic and 10 USC 1 per industrial kWh. The provision of Malaysian energy resources and the export-oriented economy seems to be the driving force behind this. Similarly, Turkey has a lower tax – 9.19 USC per household and 7.66 USC per kWh per industrial tax. China seems to have a similar tax within the Southeast Asian region.

After reviewing the electricity tariffs of the relevant countries, we conclude that Pakistan’s electricity tax is twice as high and deserves urgent consideration. Changes in outcomes and outcomes should not be expected. Still, there can be a measure of hope.

The energy sector is a major taxpayer. According to some estimates, tax revenue from the energy sector reached Rs900 billion in 2016-17, which was 25 percent of total tax revenue; GST from the energy sector makes up 60% of the total GST. Due to our nominees and business people’s inability to pay the right taxes, the government relies heavily on indirect taxes.

And now, under IMF shares, any income reduction is unacceptable. In fact, they have encouraged indirect taxes since they have seen the failure to increase direct tax collection. Other changes are possible, however. There is a case of lowering GST by retaliation for India’s action. In India, VAT on electricity is 6 percent or less in some provinces. GST reductions for home-based buyers can be recommended because 17 percent of GST is no longer a great addition to already high prices. Residential buyers do not receive installation adjustments; 6% of GST may be appropriate and may reduce consumer debt.

 

The government has shown more than just the right attitude to reduce debt. However, along with lower inflation and high interest rates, clearing the balance and bringing all kinds of fixed and acceptable payments into consumer prices have increased inequitable electricity bills.

Rewards for high prices on electricity projects in previous government administration are a factor, but lower inflation and higher interest rates have provided greater tax revenue. The energy sector has grown significantly based on FDI and external debt. Operating interest rates have also increased due to rising interest rates. Many prominent economists are clamoring for a reduction in interest rates. Initial measures in this regard will reduce the pressure on tariffs to some extent.

There is a big difference between winter and summer demand. Fixed costs increase due to capacity increase and slower demand. The government has introduced other incentives that increase demand, such as a reduction in winter taxes. There is a constant use of electricity during the night, either in summer or winter. There is a reduced overnight price for night-time industries only in India. There is an overnight tax for IRs2.60 and for industry only vs IRs4.25 general industrial tax. Other measures can be taken in this regard as well as delaying the creation of new energy.

High risk and high financial costs have caused Pakistan’s energy tax to double than elsewhere. There is something fishy about it. Ethiopia, everywhere, has been rewarded with higher debt than Pakistan. Our politicians’ improper or embarrassing haste has also prevented enough negotiations to undermine both CAPEX and financial policies. In fact, Nepra’s premium payments reduced the size of the bilateral negotiations between the companies. Sometimes it is possible to re-negotiate the terms of the loan after the implementation of the project due to risk reduction. Payment times may be increased.

Nepra may be encouraged to take some precautionary measures, at least in cases of extreme violations and deviations, although the practice of going back and opening old cases is not easy. Some changes and corrective measures have been discussed in this area earlier. The unreasonably high Cost of O&M demanded by some IPPs can be corrected immediately.

Conclusion
The energy sector cannot be treated alone in the larger economic framework and its transformation. Growing demand will automatically improve energy consumption and lower prices. It will improve the government’s ability to reduce the tax burden on the sector and reduce electricity prices, which could boost demand and economic growth. Sufficient time should be given for macroeconomic adjustments before implementing additional financial measures. A large segment of our society will recognize the government’s intention to take steps to reduce electricity tariffs.

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