ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has raised concerns over the slow rehabilitation of the Guddu and Neelum Jhelum power plants, which have collectively inflicted a financial loss of Rs. 130.7 billion on the national exchequer.
In an additional note on the decision regarding Discos’ Fuel Cost Adjustment (FCA) for February 2025, NEPRA Member (Tech) Rafique Ahmad Shaikh stated that the utilization of thermal power plants stood at approximately 24% during February 2025, while the HVDC system operated at just 23%. He emphasized that this underutilization is adversely affecting consumers.
According to him, the Guddu 747 MW plant, which is operating in open-cycle mode, resulted in a financial loss of Rs. 0.6 billion in February 2025, bringing the cumulative loss for FY 2024-25 to Rs. 5.7 billion. The reduced generation from the plant forced the system to rely on more expensive fuel-based plants, leading to a financial loss of Rs. 22 billion for February alone. Since the plant’s outage, the total loss has reached Rs. 107 billion.
Similarly, he noted that the outage of the 969 MW Neelum Jhelum hydropower plant necessitated increased reliance on costlier fuel-based plants, resulting in a financial loss of Rs. 0.8 billion in February 2025. The cumulative loss for FY 2024-25 has now reached Rs. 23.7 billion.
Addressing transmission line issues, he pointed out that system constraints and contractual obligations led to losses of Rs. 1.98 billion in February alone, with a total impact of Rs. 11.69 billion over the first eight months of FY 2024-25. He stressed that these inefficiencies require immediate corrective measures to optimize asset utilization, reduce costs, enhance reliability, and minimize financial losses.
“In my opinion, the rehabilitation of the Guddu and Neelum Jhelum plants is progressing too slowly. Urgent repairs and restoration are needed for these facilities. Additionally, the South-North transmission constraint must be addressed immediately, as it is restricting the effective utilization of cheaper generation in the south and contributing to the underutilization of the HVDC line. Swift action from all relevant stakeholders is essential,” Mr. Shaikh concluded.
