ISLAMABAD: Electricity prices are likely to be increased in summer due to less generation from hydel sources and more generation from RLNG-fired power plants which will be more expensive.
This was revealed by the General Manager, National Power Control Centre(NPCC), the System Operator during a public hearing at NEPRA regarding the negative Fuel Charges Adjustment (FCA) request submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G) for January 2025.
He explained that the storage in Tarbela reservoir is 2 or 4 feet above the dead level which will result in a substantial reduction in cheap power generation, as inflows are also expected to fall short of projections. Another reason is less snow from projections.
The hearing, presided over by NEPRA Chairman Waseem Mukhtar, led to the decision to summon the Water and Power Development Authority (WAPDA) to provide an updated status on water availability for the summer. The expected reduction in hydel generation will also affect the energy mix and reference projections.
The representative of NPCC further informed the Authority that total consumption in January 2025 had decreased by 4.4% compared to January 2024, with a 2% year-on-year reduction.
CEO CPPA-G Rihan Akhtar informed that a 2% reduction in electricity consumption has been witnessed in January 2025 compared to the same month in 2024, with the most significant decreases observed in the industrial and agricultural sectors. The main reason for reduced agricultural consumption was the shift from grid electricity to solar power, while the industrial sector’s reduction in consumption had various underlying causes.
This information was shared by an NPCC representative during a public hearing at NEPRA regarding the negative Fuel Charges Adjustment (FCA) request submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G) for January 2025. CPPA-G has requested a negative adjustment of Rs 2.003/kWh to be applied in March 2025, replacing the current negative FCA of Rs 1.228/kWh effective in February. As a result, consumers will see a net decrease of Rs 0.74/kWh in their electricity bills for March 2025.
Chairman NEPRA also raised questions on the QTA data for second quarter(October-December) 2024-25, saying that there is substantial difference in figures provided by the Power Division and NEPRA, directing Additional Power Division to sit with the team of NEPRA to rectify the figures so that determination is released.
