ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has reserved its decision regarding a proposed reduction in power tariffs by up to 71 paisa per unit under the monthly fuel price adjustment (FPA) for September 2024.
The public hearing took place on Wednesday, chaired by NEPRA Chairman Waseem Mukhtar, to evaluate the application submitted by the Central Power Purchasing Agency (CPPA).
During the hearing, officials from the National Power Control Center (NPCC) reported that solarization and a reduction in demand have led to peak hours extending until 1 AM. They also noted that the shutdown of the Neelum Jhelum Hydropower Plant has contributed to a decrease in hydroelectric production. In addition, some coal-fired power plants generated less electricity during this period.
In response, NEPRA questioned the reasons behind these operational issues, but NPC officials struggled to provide satisfactory explanations. The NEPRA Chairman expressed frustration, stating, “I regret that officials do not come prepared.”
The NEPRA chairman also mentioned that an inquiry committee established by the Prime Minister is currently investigating the Neelum Jhelum hydropower project. However, he acknowledged that there is no current estimate for the repair costs associated with the plant. “Until we have solid numbers, the government will not know what to do,” he added, emphasizing the importance of the Prime Minister’s approval of the inquiry report before any conclusions can be made.
The Neelum Jhelum hydropower project is presently inactive, raising questions from consumers about NEPRA’s stance on the situation. An electricity consumer queried, “What will the Authority say about this?” The NEPRA chairman clarified that the Neelum Jhelum project operates on a take and-pay basis but noted that its shutdown ultimately results in losses for consumers.
“If the Neelum Jhelum hydropower project were operational, it would have generated cheap electricity,” remarked another consumer, highlighting the frustration shared by many regarding the situation.
The NEPRA statement indicated that the public hearing concerning the monthly fuel charge adjustments for September conducted at NEPRA headquarters has concluded. However, the authority will release a detailed decision after verifying the submitted data.
In its application, the CPPA requested NEPRA’s approval to reduce the electricity price by Rs 0.7057 per kilowatt-hour (kWh) under the Fuel Charges Adjustment (FCA) for September 2024. A subsequent public hearing has been scheduled for October 30, 2024, to further assess the proposed adjustment and its implications for the power sector.
According to the application filed by CPPA, the total electricity generated in September 2024 was recorded at 12,487 GWh (gigawatt hours) at an average cost of Rs 8.3380 per unit, amounting to a total energy cost of Rs 104,114 million.
Of the total electricity generated, hydropower contributed the largest share with 4,838 GWh, accounting for 38.75 percent of the generation at zero cost. Coal-fired local and imported power plants generated 2,410 GWh, costing Rs 12.2882 per unit for local coal and Rs 16.5990 per unit for imported coal. The total cost for coal-based generation was Rs 34,569 million.
Power generation from gas-based plants amounted to 988 GWh, representing 7.91 percent of the total generation at Rs 13.6768 per unit. In comparison, power produced from Regasified Liquefied Natural Gas (RLNG) contributed 2,039 GWh, or 16.33 percent, at Rs 24.9570 per unit.
Other notable sources of energy included nuclear power, which generated 1,596 GWh (12.78 percent) at the lowest cost of Rs 1.5417 per unit, and electricity imported from Iran, which amounted to 40 GWh at a significantly higher cost of Rs 25.9519 per unit.
Renewable energy sources also played a role, with wind power contributing 395 GWh (3.17 percent), solar 105 GWh (0.84 percent), and bagasse 36 GWh at Rs 12.4788 per unit.
The CPPA’s data indicated that a total of 12,118 GWh of electricity was delivered to DISCOs in September 2024, at a rate of Rs 9.0949 per unit, with a total cost of Rs 110,216 million.
