ISLAMABAD The National Electric Power Regulatory Authority (NEPRA) has expressed concerns over the slow growth in electricity consumption, which has increased by only 3.18% from 2018 to 2024. This growth is attributed to high prices, economic factors, increased solar power adoption, and reduced hydropower generation.
During a recent public hearing, NEPRA debated CPPA-G’s request for a negative adjustment of Paisa 31 per unit in the Fuel Charges Adjustment (FCA) for July 2024, which would result in a Rs 4.5 billion refund to consumers using more than 300 units. Consumers using up to 300 units already receive a subsidy, and the adjustment will reflect in September 2024 bills.
A presentation by Wajid Chatha from the National Power Control Centre (NPCC) showed that while total electricity generation increased from 13,740 GWh in July 2018 to 14,818 GWh in July 2024, the proportion of daytime generation decreased from 38% to 36%. NEPRA noted the discrepancy between consumption growth and population growth and questioned the accuracy of the NPCC’s data.
Muhammad Yousaf from CPPA-G suggested that the NPCC’s generation figures were inaccurate and that solar generation data was missing. Chairman Waseem Mukhar clarified that NPCC’s figures only represented national grid generation.
Discussion also covered the sale of expensive peak-time generation at lower rates due to reduced sales from solar PV installations. It was clarified that FCA calculations include all generation costs. Transmission constraints were highlighted, with Wajid Chatha indicating that only 4500 MW could be transmitted from cheaper sources in the South, necessitating the operation of costly RLNG plants in the North.
Member Sindh Rafique Ahmad Shaikh inquired about the investment needed to address transmission constraints. NPCC confirmed that a plan to address these constraints is in progress. Chairman NEPRA directed CPPA-G to include peak-hour timings in new tariff guidelines.
Member KPK Maqsood Anwar Khan questioned whether expensive generation contributed to reduced industrial consumption, noting that industrial operations typically occur during low-demand periods. CEO CPPA-G acknowledged that high prices are a key factor in reduced consumption.
Concerns were raised about the national grid’s ability to cope with reduced demand in winter due to net metering. Arif Bilwani proposed increasing electricity supply to K-Electric if transmission capacity is insufficient. Imran Shahid from Jamaat-e-Islami criticized the power sector’s performance, which he believes is causing national difficulties.
