{"id":5346,"date":"2024-05-24T00:14:00","date_gmt":"2024-05-23T19:14:00","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=5346"},"modified":"2024-05-27T14:24:42","modified_gmt":"2024-05-27T09:24:42","slug":"ipps-capacity-payments-projected-to-rise-by-33pc-to-rs2-8tr-in-next-fiscal-year","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/ipps-capacity-payments-projected-to-rise-by-33pc-to-rs2-8tr-in-next-fiscal-year\/","title":{"rendered":"IPPs capacity payments projected to rise by 33pc to Rs2.8tr in next fiscal year"},"content":{"rendered":"\n<p>Consumers in Pakistan are bracing for higher electricity bills as independent power producers (IPPs) anticipate a significant increase in capacity payments. In the fiscal year 2023\/24, capacity charges constituted a staggering <strong>71%<\/strong> of power purchase costs, with consumers feeling the pinch of escalating bills. <\/p>\n\n\n\n<p>Now, projections suggest that capacity payments will soar by<strong> 33%<\/strong> to <strong>Rs2.8 trillion<\/strong> in the upcoming fiscal year 2024\/25. These projections were presented during a public hearing by the National Electric Power Regulatory Authority (NEPRA), where concerns were raised about the adverse impact on industrial operations and consumer affordability.<\/p>\n\n\n\n<p>During the hearing, the Central Power Purchasing Agency (CPPA) outlined scenarios for the next financial year, indicating a potential increase of <strong>Rs5 per unit<\/strong> in electricity rates. This hike could add <strong>Rs310 billion<\/strong> to consumers&#8217; bills, with the total power purchase price estimated to reach <strong>Rs3.58 trillion<\/strong>, up from Rs3.28 trillion in the current fiscal year. Notably, capacity payments are set to constitute a significant portion of this amount.<\/p>\n\n\n\n<p>Despite the rise in capacity payments, the addition of new IPPs to the national grid continues, further exacerbating the financial strain due to the rupee&#8217;s devaluation. The CPPA projections for the next fiscal year also highlight anticipated increases in energy costs, ranging from Rs8.61 to Rs9.34 per unit, along with capacity charges between <strong>Rs15.49<\/strong> and <strong>Rs17.42<\/strong> per unit.<\/p>\n\n\n\n<p>Furthermore, the distribution margins of XWDiscos are expected to rise by <strong>15 to 20 percent<\/strong>, potentially burdening consumers with additional costs amounting to <strong>Rs337 billion<\/strong> to <strong>Rs358 billion<\/strong>.<\/p>\n\n\n\n<p>The looming surge in electricity prices underscores the pressing need for effective measures to address the growing financial burden on consumers and ensure sustainable energy affordability in Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumers in Pakistan are bracing for higher electricity bills as independent power producers (IPPs) anticipate a significant increase in capacity payments. In the fiscal year 2023\/24<\/p>\n","protected":false},"author":8,"featured_media":5347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153],"tags":[277],"class_list":["post-5346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-power-sector"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Power-Sector-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Power-Sector-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Power-Sector-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Power-Sector.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/5346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=5346"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/5346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/5347"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=5346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=5346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=5346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}