90 PKR per Unit in Electricity will be charge in September`s Bill

[SaadH]

Can't the CJP take suo moto notice of those IPP contracts like his predecessors did with Rico Diq and at least bring the local agents, namely Sharifs and Bhuttos to justice?

 

[ziaulislam]

That is 30 cents per kWh; three times what I pay. Pretty steep even for an American. At that rate, my summer bill will be about $300 per month and winter bill about $600 per month. I can afford it, but I will grumble loudly.

Electricity is pretty cheap in Pakistan at around 10-13 cents

The bills are high because everyone who is non filler has been asked to pay income tax on the bill

In addition there is 50-70% taxes like 18 %GST and several other surcharges

The reason electricity is cheap is because 30% power comes from legacy hydro plants which are less then a cent in production

 

[indushek]

This PKR 90/unit must be a one time impost to make up for shortfall of the past. I expect it will become normal from next month?

Regards

Nope there is another hike for next month, of some 4 or 5 rs

 

[epebble]

they should not use something they cannot afford ???? what is this culture of entitlement that has been built up in pakistan ??? the cost to pakisrani's is the actual cost which is from fx rates, and contractual terms and market prices of the fuel.

I don't think that argument will work well today with electricity. It is considered as essential good like food and water. Even if one were to approach it strictly from 'Let markets do the job', what might happen is a steep drop in demand where poor people might give up on electricity and resort to oil lamps etc. bringing hardship. It also raises demand for kerosene and increases fire hazard etc., Factories that use power will also shutdown as they can't afford the power, increasing unemployment. Next thing will be power producers have to offline the generators. Once enough capacity is taken out, the grid may become unstable and start tripping leading to frequent grid collapses. This is the situation in Lebanon is today.

 

[Baburfromsarmarkand]

if you cant beat them join them, join the govt and get free elec.

 

[Olympus81]

The electricity bills seem to include income tax and GST hence they are very steep.

The IPP is a complex issue involving decades of screw ups.

Failure to build dams
No Iran Pakistan gas pipelines
Signing IPP contracts with ill intent
Not focusing enough on renewables
Building Sahiwal Coal Power Plant in the middle of Pakistan
Going through with oil power plants
Transmission losses
Electricity theft

The PTI came with a long term strategy to build dams Bhasha and Mohmand dams. Tried to re negotiate IPP contracts, but couldn’t. Tried to bring transparency to CPEC projects.

But again, no government can solve this. This will take atleast a decade to turn around. But there are mafias with vested interests everywhere.

 

[FuturePAF]

The only way this electricity crisis can be solved is a buy out / bail out. A democratically elected government comes into power, breaks the contracts with these IPPs and sells them to private Pakistani investors that get something besides the power plants exchange for their investment.

This is why PTI needs to meet with people capable of making this large of an investment.

If as @Skull and Bones says that power prices are a tenth the prices being charged in Pakistan, then there is no hope of competitiveness without “restructuring”; perhaps that would mean handing over some actual power to the diaspora and empowering them to keep in check other political actors (not just those in suits).

 

[kmc_chacko]

Not the same for all locations...

Bangalore - I just paid for 147 Units = 1717 RS (11.68 INR per unit with all the taxes)

why ? didn't you opt for Gruha Jyothi Scheme ?

 

[Jango]

And what Khan did exactly to alleviate the problem? He was in Government for 4 years and price of electricity increased significantly in his tenure.....what was Khan doing to resolve that?

The circular debt was increasing at 400 billion per annum, at the end of PTI tenure it was 100 billion, and at the end of PDM period it was around 350. Figures by Hammad Azhar.

Then, they fast tracked the work on multiple hydro projects. Would they be completed in 2 years so that IK could go and inaugurate a takhti? No. But would it be beneficial for us for the next 30 years, yes!

You have Ahsan Iqbal saying that 'PTI hakoomat nay aik bhi power plant nhn lagaya'. This is a federal minister saying this, who is an MBA or whatever. He very well knows our problem is not power generation. Even today we have surplus capacity. The problem is not power generation, but he still makes this statement.

Thirdly, how do you renege on long term contracts with IPP's? What would Khan do for that?

It's like you shoot a guy in the chest, and then blame the doctor for not being able to revive the patient.

Also, they introduced WACOG. It's not directly related to the power bills, but a part of the total utility bills that the consumer pays.

They also restructured the DISCOs. Sure, there was still plenty of room for improvement, but it was a start. PDM came in and totally changed the boards of DISCOs and had their own cronies into them.

Guess who the following minister is?

https://twitter.com/x/status/1696217245612195990

I cannot afford an S Class so should I start grumbling? We don't have Oil or Gas and hence all our power generation is based on imported fuel which is increasingly more expensive due to continuously falling PKR; nothing that anybody can really do in the short term to manage that.

That's why you plan your power generation mix for the next 20 years rather than make decisions on a whim.

France does not have oil and gas. What did it do? Did it create this excuse and just start importing LNG and coal and whatever? No. They planned it out, they went for nuclear. Iceland (or Finland?) does not have viable O&G, so what did they do? They went for geothermal. You plan stuff, that's why you are in government. If you are planning stuff for the next week or next year, you are already faaaar behind the curve.

Can we control imported fuel prices? No.

Can we not create an imported coal power plant in Sahiwal? Hell yes.

Can we not create a solar park in Bahawalpur with zero thought about the upkeep? Yes.

Can we not create short term power plants on capacity payments? Yes.

The only way this electricity crisis can be solved is a buy out / bail out. A democratically elected government comes into power, breaks the contracts with these IPPs and sells them to private Pakistani investors that get something besides the power plants exchange for their investment.

What is the penalty for breaking the contracts?

I believe sooner or later, we will have to take this bitter pill for the short term, and get long term gains.

Tried to bring transparency to CPEC projects.

And suddenly they were called traitors and Asad Umar and Razzaq Dawood were called to GHQ and given an ear full.

Aur choopo phir chinese kay and keep reaping the rewards.

Am I saying that PTI is the solution to everything? No.

But at least they check out 10 of the 100 agenda items, rather than making 50 things worse.

 

[kmc_chacko]

Can't the CJP take suo moto notice of those IPP contracts like his predecessors did with Rico Diq and at least bring the local agents, namely Sharifs and Bhuttos to justice?

I think he seems busy with something else since he is retiring in coming months.

It quite funny that you guys think that a economic & political issues will be settled by CJP's,

SC generally makes an amicable settled cases into a never ending cases

Electricity is pretty cheap in Pakistan at around 10-13 cents

The bills are high because everyone who is non filler has been asked to pay income tax on the bill

In addition there is 50-70% taxes like 18 %GST and several other surcharges

The reason electricity is cheap is because 30% power comes from legacy hydro plants which are less then a cent in production

same old story of non filler & nobody pays taxes bla bla - if nobody pays taxes then what media, parliament & courts are doing ? where are those famous suo moto's takers ? a CJP had actually floated Dam Fund isn't it ? where is that ? what happened to it ? what action did he take ? have you ever thought about it.

The only way this electricity crisis can be solved is a buy out / bail out. A democratically elected government comes into power, breaks the contracts with these IPPs and sells them to private Pakistani investors that get something besides the power plants exchange for their investment.

This is why PTI needs to meet with people capable of making this large of an investment.

If as @Skull and Bones says that power prices are a tenth the prices being charged in Pakistan, then there is no hope of competitiveness without “restructuring”; perhaps that would mean handing over some actual power to the diaspora and empowering them to keep in check other political actors (not just those in suits).

So as per you a democratically election government i.e, only if IK Govt comes, he will reduce the tariff ? from where he will get money to make settlement with IPPs ? where were those large investors during his 3 and half year tenure ? just like election jumlas in India, IK gave a jumla that he will do that and this everyone including establishment believed him and when they felted betrayed they simply kicked him out of power that was happed in Pakistan nothing else.

You people need to get out of this day dreaming syndrome and need to understand grave danger you guys are in and need to act united and work towards solving the problems Pakistan presently facing, instead of getting in to this political drama which will take Pakistan further down.

 

[Jango]

The electricity bills seem to include income tax and GST hence they are very steep.

I was reading somewhere that this is pressure by FBR to collect revenue. But would need to find a source for this.

All the consumer are paying for the screwups of difference govt institutions.

FBR for not being able to collect tax from non-salaried class.

DISCOs for not being able to collect bills.

Failure to resolve line losses during transmission. The PTI government made headway on HVDC lines, but do not know the progress of them right now.

Apnay aap ko theek karnay kay bajaye take the easy solution aur awam ko choosi jao choosi jao.

 

[epebble]

The only way this electricity crisis can be solved is a buy out / bail out. A democratically elected government comes into power, breaks the contracts with these IPPs and sells them to private Pakistani investors that get something besides the power plants exchange for their investment.

If such a possibility existed, any government would have done that. if the contracts are with Chinese suppliers, it would be politically unthinkable. It is like trying to sue your father.

If as @Skull and Bones says that power prices are a tenth the prices being charged in Pakistan, then there is no hope of competitiveness without “restructuring”

It numerically looks like a tenth. But, after accounting for exchange rate difference, it is more like a third. That is in keeping with global rates.

 

[FuturePAF]

I think he seems busy with something else since he is retiring in coming months.

It quite funny that you guys think that a economic & political issues will be settled by CJP's,

SC generally makes an amicable settled cases into a never ending cases



same old story of non filler & nobody pays taxes bla bla - if nobody pays taxes then what media, parliament & courts are doing ? where are those famous suo moto's takers ? a CJP had actually floated Dam Fund isn't it ? where is that ? what happened to it ? what action did he take ? have you ever thought about it.



So as per you a democratically election government i.e, only if IK Govt comes, he will reduce the tariff ? from where he will get money to make settlement with IPPs ? where were those large investors during his 3 and half year tenure ? just like election jumlas in India, IK gave a jumla that he will do that and this everyone including establishment believed him and when they felted betrayed they simply kicked him out of power that was happed in Pakistan nothing else.

You people need to get out of this day dreaming syndrome and need to understand grave danger you guys are in and need to act united and work towards solving the problems Pakistan presently facing, instead of getting in to this political drama which will take Pakistan further down.

It’s not just a democratically elected government but other key reforms that need to be carried out, to create the space for a competitive environment, in which these investors can see demand increase (due to increased industrial activity) and their investment worthwhile.

These aren’t donors, these would be investors what would require the right environment. In the 3 and half years, some progress to raise investor confidence happened as seen by the Rohsan accounts, but not enough was done to have people divert from investing in plots to investing in industry.

If investors are selling electricity at cost plus a fixed profit, and investors are getting equity in other areas, for the time being, until industrial demand picks up, costs can be brought down by market forces, not in an artificial manner.

A large portion of the people and the diaspora and international investors want a democratic and stable system.

If bot seeking the cheapest cost of borrowing / investment possibly from the diaspora, the. What is the alternative “need to act united” pathway?

 

[epebble]

I am impressed with this lady's brutal honesty. She doesn't seem to believe in happy talk politics.

Finance minister says economic situation ‘worse than anticipated’, no fiscal space available for subsidies

Shamshad Akhtar says interim set-up has "inherited" the IMF programme and hence it is "non-negotiable".

www.dawn.com

 

[Jango]

I am impressed with this lady's brutal honesty. She doesn't seem to believe in happy talk politics.

Finance minister says economic situation ‘worse than anticipated’, no fiscal space available for subsidies

Shamshad Akhtar says interim set-up has "inherited" the IMF programme and hence it is "non-negotiable".

www.dawn.com

Wasn't she the advisor on finance in PDM govt?

PDM came in and totally changed the boards of DISCOs and had their own cronies into them.

Ex-MPs’ relatives appointed on company board | The Express Tribune

Fears arise these directors may initiate politically motivated schemes

tribune.com.pk