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Nepra Declares Revenue-Linked Power Outages Illegal as Government Cites Debt Risk

Officials say ending the policy could add over Rs500 billion to circular debt.

Overview

  • Nepra, which held a public hearing Tuesday, reaffirmed that tying outages to bill recovery has no legal basis.
  • Power Division officials warned that scrapping the policy could add more than Rs500 billion to circular debt, which they said stood at Rs1.798 trillion on March 31 and is targeted at Rs1.224 trillion by June.
  • CPPA-G sought a Rs0.27 per unit fuel charges adjustment for March to be billed in May, replacing February’s Rs1.42 and yielding a net Rs1.15 per unit drop.
  • CPPA-G reported March electricity demand rose about 6.38% from the reference level as peak generation reached 18,551 megawatts.
  • Under the revenue rule, areas with weak bill recovery faced much longer outages, with reports of cuts lasting up to 18 hours.