By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Baner ClubBaner ClubBaner Club
  • Home
  • Business
    BusinessShow More
    PM Shehbaz welcomes establishment of Mashreq Digital Bank
    September 16, 2025
    US issues fresh Iran-related sanctions
    September 16, 2025
    Pakistan enters experiment phase of digital currency
    September 12, 2025
    Apple delays iPhone Air release in China due to pending eSIM approval
    September 12, 2025
    Pakistan to issue $1bn in Panda bonds through Chinese capital market
    September 11, 2025
  • Politics
    PoliticsShow More
    Govt sees conspiracy behind ‘exaggerated audit figures’ to target system
    September 17, 2025
    Pakistan urges Taliban govt in Afghanistan to cut ties with TTP
    September 17, 2025
    TikToker Samiya Hijab forgives kidnapping, harassment suspect ‘for Allah’
    September 16, 2025
    A threat note written by the suspect in Kirk’s murder was connected by DNA: FBI
    September 16, 2025
    Trump to file $15bn defamation, libel lawsuit against New York Times
    September 16, 2025
  • Technology
    TechnologyShow More
    Apple’s iOS 26 introduces a temporary issue along with liquid glass magic.
    September 16, 2025
    Meta to debut costlier smart glasses with display
    September 16, 2025
    YouTube introduces new AI tools for Shorts creators
    September 16, 2025
    Dubai Airport begins installing AI-powered 3D scanners
    September 16, 2025
    Apple’s live translation feature for AirPods unavailable in EU at launch
    September 11, 2025
  • Sports
    SportsShow More
    Pro Hockey League 2025-26: Pakistan to open campaign in Argentina in Dec
    September 16, 2025
    Afghanistan pacer Naveenul Haq out of Asia Cup
    September 16, 2025
    ICC rejects PCB’s demand to remove match referee Pycroft
    September 16, 2025
    According to Atta Tarar, India has militarily defeated and is now politicizing sports.
    September 16, 2025
    SC withdraws security for widows of retired judges
    September 16, 2025
  • Job Portal
  • Matrimonial
  • Marketplace
  • Chat Room
  • More
    • Blog
    • Interests
    • Contact Us
Reading: Next fiscal year, IPP capacity payments are expected to increase by 33% to Rs2.8 trillion.
Share
Notification
Font ResizerAa
Font ResizerAa
Baner ClubBaner Club
Search
  • Home
  • Business
  • Politics
  • Technology
  • Sports
  • Job Portal
  • Matrimonial
  • Marketplace
  • Chat Room
  • More
    • Blog
    • Interests
    • Contact Us
  • Privacy Policy
  • Terms and Conditions
© 2022 BanerClub. All Rights Reserved.
Baner Club > Blog > Pakistan > Next fiscal year, IPP capacity payments are expected to increase by 33% to Rs2.8 trillion.
PakistanPolitics

Next fiscal year, IPP capacity payments are expected to increase by 33% to Rs2.8 trillion.

In FY 2023/24, capacity payments constituted 71% of power purchase price, while 29% was energy cost

Last updated: 2024/05/27 at 1:59 PM
Published May 27, 2024
Share
2 Min Read
SHARE

ISLAMABAD Pakistani consumers are facing rising electricity rates due to the fact that a large portion of their expenses is being consumed by capacity payments to independent power providers (IPPs).

For the fiscal year 2023–2024, energy costs made up only 29% of the power purchase price, with capacity payments accounting for an astounding 71% of the total. Customers bore the brunt of the burden, as energy costs remained at Rs6.73 per unit and capacity charges skyrocketed to Rs16.22 per unit. Capacity payments are expected to grow by one-third to Rs2.8 trillion for the fiscal year 2024–2025 from Rs2.1 trillion in the current fiscal year. The already heavy weight of these costs on electricity bills is expected to be greatly affected by this spike.

In the course of Thursday’s National Electric Power Regulatory Authority (NEPRA) public hearing, speakers emphasized the negative impacts of elevated electricity costs on industrial processes. Numerous industrial facilities have already closed, and with the impending rate increases, consumption is predicted to decline much further. In their scenarios for the next fiscal year, the Central Power Purchasing Agency (CPPA) projected an increase of Rs5 per unit. Consumer bills will rise by Rs 310 billion as a result of this hike, bringing the predicted overall power purchase price up from Rs 3.28 trillion this year to Rs 3.58 trillion. This amount, which would range from Rs 2.1 trillion to Rs 2.8 trillion, will be largely made up of capacity payments alone.Three new plants were just added to the national grid, demonstrating that the installation of IPPs is continuing despite the growing capacity fees. Because the payments are pegged to the dollar, the depreciation of the rupee makes matters worse financially. Worrisomely, because of existing agreements, even power plants that invested in rupees are receiving dollar-indexed payments.

You Might Also Like

Govt sees conspiracy behind ‘exaggerated audit figures’ to target system

Pakistan urges Taliban govt in Afghanistan to cut ties with TTP

The 2025 commerce results are announced by the Karachi Board. Check here

Pakistan, UAE agree to boost cooperation on cashless economy

Pro Hockey League 2025-26: Pakistan to open campaign in Argentina in Dec

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
admin May 27, 2024 May 27, 2024
Share This Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Copy Link
Share
Previous Article A family’s disagreement over food at a restaurant extends beyond a single evening out: “Consider carefully.”
Next Article Speaker from the NA emphasizes “parliamentary diplomacy” during meeting with counterpart from the UK.
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

Facebook Like
Twitter Follow
Pinterest Pin
Instagram Follow
Youtube Subscribe
Dribbble Follow
- Advertisement -
Ad imageAd image

Latest News

Govt sees conspiracy behind ‘exaggerated audit figures’ to target system
Pakistan Politics September 17, 2025
Pakistan urges Taliban govt in Afghanistan to cut ties with TTP
Pakistan Politics September 17, 2025
The 2025 commerce results are announced by the Karachi Board. Check here
Education Pakistan September 16, 2025
Pakistan, UAE agree to boost cooperation on cashless economy
News Pakistan September 16, 2025
//

Where headlines meet insight, and stories shape perspectives. Your gateway to informed perspectives and captivating narratives.

Top Categories

  • BUSINESS
  • POLITICS
  • TECHHot
  • HEALTH
  • News
  • Technology
  • Fashion

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Baner ClubBaner Club
Follow US
© 2025 BanerClub. All Rights Reserved.
  • Privacy Policy
  • Terms and Conditions
Pay with Paypal

Login

Register

Please enter your username or email address. You will receive a link to create a new password via email.

Loading Back to login
Forgot Password
Facebook Login Loading...
Registration is currently disabled.
  • Login
  • Sign Up
Forgot Password?
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.
body::-webkit-scrollbar { width: 7px; } body::-webkit-scrollbar-track { border-radius: 10px; background: #f0f0f0; } body::-webkit-scrollbar-thumb { border-radius: 50px; background: #dfdbdb }
Welcome Back!

Sign in to your account

Lost your password?