ISLAMABAD: The government’s three-month Winter Incentives Package, launched in December 2024, appears to have fallen short of expectations regarding increased electricity consumption. Electricity generation in December showed a modest growth of just 0.96% to 7,800 GWh, compared to 7,726 GWh in December 2023.
However, the net electricity delivered to Distribution Companies (Discos) saw a 1.32% increase, rising to 7,516 GWh in December 2024, up from 7,418 GWh in December 2023. Generation figures also recorded a 2.9% growth in December 2024 compared to November 2024, when total generation stood at 8,032 GWh.
The Central Power Purchasing Agency–Guaranteed (CPPA-G) has requested a negative adjustment of Rs 1.0353 per unit in the Fuel Charge Adjustment (FCA) for December, which would refund Rs 8 billion to consumers, excluding lifeline consumers, under the monthly FCA mechanism.
According to available data from Newzshewz, hydel generation experienced a 5.4% decrease, dropping to 1,778 GWh in December 2024 from 1,859 GWh in the same month of 2023. Coal-based generation saw a sharp decline of 40%, falling to 784 GWh in December 2024 from 1,310 GWh in December 2023. Furthermore, generation from imported coal dropped significantly by 74.4%, to 124 GWh in December 2024 from 384 GWh in December 2023.
Generation from Residual Furnace Oil (RFO) also saw a dramatic 98% decline, down to just 3 GWh in December 2024 from 168.2 GWh in December 2023.
On the positive side, generation from indigenous gas grew by 16%, reaching 960 GWh in December 2024, compared to 826 GWh in December 2023. RLNG generation saw an even larger increase, up by 27.36%, to 1,615 GWh from 1,268 GWh in December 2023. Generation from nuclear energy also experienced substantial growth, increasing by 40% to 2,065 GWh in December 2024, compared to 1,464 GWh in the same month of 2023.
When comparing December 2024 to November 2024, there was a significant 38% decline in hydel generation, which dropped to 1,778 GWh from 2,860 GWh in November. Local coal generation also fell by 23%, from 1,019 GWh in November to 784 GWh in December. Similarly, generation from imported coal decreased by 74% to 124 GWh from 477 GWh in November.
However, generation from indigenous gas increased by 12%, RLNG surged by 78%, and nuclear energy rose by 24.8% in December compared to November 2024.
The data suggests that the Winter Incentives Package has not succeeded in boosting consumption within Discos’ jurisdictions. There is, however, a possibility that consumption data from K- Electric (KE) may show a different outcome for the winter package’s effectiveness.
The National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a public hearing on January 30, 2025, to seek further explanations from CPPA-G and to provide consumers’ representatives the opportunity to express their views on the FCA adjustment data.
In its FCA adjustment request, CPPA-G argued that the reference fuel charges for December 2024 were Rs 10.6364 per unit, while the actual fuel charges were Rs 9.6011 per unit, thereby justifying a negative adjustment of Rs 1.0353 per unit.
Ends
