Iran seeks upward tarrif revision for Electricity supply

Pakistan has invited Iranian Energy Minister Ali Akbar Mehrabian to discuss the tariff for an additional 100MW of electricity to be supplied to Gwadar, as Iran has sought a revision in the existing agreement for an upward revision in the tariff. The project involves the supply of 100MW of additional electricity from Iran to Makran Division, Pakistan through the 132 kV Polan-Gabd/Gwadar power transmission line.

The transmission line has been constructed on the Pakistan side, and the installation of necessary equipment by Iran on the border has also been completed. Recently, an Iranian delegation of M/s Tavanir visited the 132 KV Jiwani Grid Station with QESCO for a technical review of the project. The project was suspended for some time, and the two sides achieved success in June 2022 by signing amendments to the existing agreements to operationalize the first phase of the project by constructing a 29km transmission line till Jiwani, which will help overcome electricity shortages in the area.

Presently, Pakistan is importing 74 MW of electricity from Iran for the bordering areas of Balochistan at a cost of around Rs 25 per unit. Iranian sources have proposed revising the formula under which existing electricity is being purchased. The Pakistani government suggests that the current formula for electricity being supplied is applicable until December 2024, and the same formula can be considered for additional electricity until then. Alternatively, if the pricing formula for additional electricity needs revision at this point, the prices may be capped to an upper limit of 10 Cents/kWh.