The National Electric Power Regulatory Authority (Nepra) has raised concerns over the extra burden placed on electricity consumers due to inefficient operations at several power generation and transmission projects.Â
In a special note to the government, Nepra’s technical member, Rafique A. Shaikh, highlighted that the issues in the 4,000MW Lahore-Matiari Transmission Line, 969MW Neelum-Jhelum Hydropower Plant, and 747MW Guddu Power Plant have resulted in a financial impact of over Rs1.5 per unit for consumers.
According to Shaikh, thermal power plants were operating at only 24% capacity in February 2025, while the HVDC system functioned at just 23% capacity. Despite this underutilisation, consumers continue to pay for full capacity. This inefficiency has led to the use of more expensive power plants in the northern regions to ensure grid stability, further increasing the financial burden on consumers.
The Guddu Power Plant, which has been operating in an open-cycle mode, has caused significant losses. In February, this resulted in a Rs600 million loss, with the cumulative loss for FY25 reaching Rs5.7 billion.Â
Similarly, the shutdown of the Neelum-Jhelum plant has forced the grid to rely on costlier fuel plants, resulting in a financial loss of Rs0.8 billion for February 2025 and a cumulative loss of Rs23.7 billion for FY25.
Shaikh emphasised that system constraints and contractual obligations contributed to additional losses of Rs1.98 billion in February, bringing the total loss for the first eight months of FY25 to Rs11.69 billion. He urged for urgent corrective measures to optimise asset utilisation, reduce costs, and improve reliability.
The rehabilitation of the Guddu and Neelum-Jhelum plants has been progressing slowly, and Shaikh called for immediate repairs and restoration. He also stressed the need to address the south-north transmission constraint, which limits the use of cheaper generation in the south and exacerbates inefficiencies in the HVDC line.
