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UMERKOT: Flour mill owners in Umerkot district have rejected the government-fixed price of Rs128 per kilogram, arguing that the sharp increase in wheat prices has pushed their production costs far above the officially notified rate. The millers said the prevailing wheat price in the open market had climbed to around Rs125 per kilogram, while additional expenses related to milling, labour, electricity, transportation and other operations had increased the overall cost of producing flour to nearly Rs140 per kilogram. They maintained that selling flour at Rs128 per kilogram was therefore commercially unsustainable and would force mill owners to operate at a loss. In this regard, representatives of the flour milling industry have submitted written applications to the Mirpurkhas commissioner and the Umerkot deputy commissioner, requesting authorities to reconsider the existing flour price and determine a new rate based on prevailing market conditions and production costs. The mill owners also raised objections to what they described as excessive administrative action against flour mills across the district. They specifically complained about raids and wheat seizures allegedly carried out by assistant commissioners in Umerkot, Kunri, Samaro and Pithoro. According to the millers, government policy allows flour mill owners to maintain wheat stocks of up to 850 bags per stone at their mills or designated warehouses. They alleged that despite the provision, local administrative officials had conducted raids on mills and storage facilities and seized wheat stocks. The mill owners termed the alleged seizures unjustified and said such actions were creating additional difficulties for an already financially pressured industry. They urged the authorities to ensure that enforcement measures were carried out strictly in accordance with the relevant government policy. The millers further called for an investigation into alleged irregularities involving food department inspectors. They demanded that senior provincial officials examine the complaints and take appropriate action if any wrongdoing is established. They appealed to the Sindh chief minister, provincial food secretary, Mirpurkhas commissioner, Umerkot deputy commissioner and other concerned authorities to intervene in the matter and review the officially fixed flour price. The mill owners argued that the price should be determined after taking into account the current cost of wheat as well as electricity, labour, transportation, maintenance and other expenses associated with flour production. They warned that continued enforcement of a price they consider economically unviable could increase financial losses for flour mills and put further pressure on the district’s milling industry. The millers said they were willing to cooperate with the administration in maintaining the availability of flour and preventing unjustified price increases, but stressed that any official pricing mechanism must reflect actual market and production costs. They also urged the provincial government to establish a transparent mechanism for monitoring wheat stocks and flour prices so that disputes between millers and local administrations could be resolved through clear rules rather than repeated raids and seizures.

The National Electric Power Regulatory Authority (Nepra) has approved a Rs21.436 billion Distribution Investment Plan (DIP) for Sukkur Electric Power Company Limited (SEPCO), covering its transmission and distribution operations for the five-year Multi-Year Tariff (MYT) period from fiscal year 2025-26 through FY2029-30. Along with the investment plan, the regulator has also set provisional targets for transmission and distribution (T&D) losses, while directing SEPCO to improve project execution, digitalise operational data and strengthen its planning and monitoring mechanisms. SEPCO had originally requested approval for an investment programme worth Rs90.563 billion. However, after Nepra raised several questions regarding the proposed projects, costs, utilisation of existing assets and investment requirements, the power utility submitted revised details. Following the revisions, SEPCO reduced its proposed investment to Rs40.191 billion in information submitted to Nepra on June 19, 2026. The revised proposal included changes in investment priorities and network development requirements based on updated demand projections. The company also revised project costs in light of the latest Purchase Orders (POs). Nepra, however, found substantial weaknesses in SEPCO’s original investment submission. According to the regulator, the initial proposal did not adequately reflect actual field conditions and lacked a comprehensive assessment of the utility’s requirements. It also contained gaps in cost calculations and information concerning the utilisation of existing assets. The regulator stressed that future investment planning should be based on reliable data, realistic demand assessments and proper evaluation of existing infrastructure rather than relying solely on projected requirements. Low utilisation of previous investments raises concerns Nepra also raised concerns over SEPCO’s ability to execute projects and utilise approved investment funds effectively. During the previous control period, SEPCO had been allowed investment of Rs39.509 billion. However, the company utilised only Rs14.231 billion, representing around 36% of the approved amount. The regulator said the low utilisation rate raised questions about SEPCO’s project implementation capacity and the efficiency with which approved investments were being converted into infrastructure and operational improvements. Delays were particularly noted in projects falling under the STG head. Nepra attributed the slow progress to difficulties in acquiring land, procurement-related problems and inadequate coordination between relevant departments. The regulator indicated that these issues point towards weaknesses in project planning, monitoring of milestones and implementation. SEPCO asked to improve network performance Nepra has also expressed concern over SEPCO’s technical and operational performance, particularly its transmission and distribution losses and reliability indicators, including the System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI). The authority directed the company to strengthen preventive maintenance programmes, improve energy accounting and introduce stronger system controls. These measures, Nepra said, are necessary to reduce losses, improve reliability and ensure consumers receive a more stable electricity supply. SEPCO’s approved investment priorities include expansion and strengthening of its 132-kilovolt network, augmentation of the existing system to accommodate future electricity demand and the deployment of modern technologies. The proposed technological improvements include Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) systems and Geographic Information System (GIS)-based mapping. These technologies are expected to support better monitoring of the electricity network, improve operational efficiency and enhance safety and service quality. Independent consultant made mandatory In a significant condition attached to the investment approval, Nepra has required SEPCO to engage an independent third-party consultant to review and validate its future investment plans before they are submitted to the regulator. SEPCO has also been instructed to prepare detailed Terms of Reference (ToRs) for the consultant and obtain Nepra’s approval before beginning the procurement process. The regulator said independent validation would help ensure that future investment proposals are based on actual requirements and that proposed projects are properly justified. Nepra pushes digitalisation of SEPCO operations Nepra has further directed SEPCO to move away from manual data-management practices and establish a comprehensive digital system for its operational information. The authority noted that dependence on manual systems can result in errors, delays and inefficient decision-making. A fully integrated digital platform, according to Nepra, would allow the company to monitor its network in real time, improve demand forecasting and make investment decisions based on reliable data. The regulator has also adopted a dynamic approach to the approved investment programme, allowing adjustments on an annual basis as well as a mid-term review. SEPCO has been directed to submit its mid-term review by December 2027. The review will include updated electricity demand forecasts, progress on approved projects and the company’s financial performance. Provisional T&D loss target set at 16.31% For FY2025-26 and FY2026-27, Nepra has approved a provisional T&D loss target of 16.31% for SEPCO. The target includes a 1% allowance related to law-and-order conditions. The regulator has also ordered SEPCO to commission an independent third-party assessment of its T&D losses through an international consultant or consortium. The study is required to be completed within nine months, with the timeline taking effect from January 7, 2026, in accordance with the tariff rebasing decision. Nepra warned that failure to submit the required independent study within the prescribed period could result in the regulator applying benchmark loss levels. Under the benchmark framework, the applicable levels would include 5.32% high-tension (HT) losses and 1.85% low-tension (LT) losses, resulting in total distribution losses of 7.17%. Transmission losses would be set at 1%, while the overall technical loss ceiling would remain within the range of 8% to 10%.