Nepra highlights critical transmission issues, warns of rising costs and inefficiencies in Pakistan's power grid

Pakistan’s national transmission system is facing major operational challenges, including overloading and underutilisation, which are undermining the efficiency of power supply and imposing an unquantifiable financial burden on consumers, according to a detailed review by the National Electric Power Regulatory Authority (Nepra).

The report points to severe overloading in key sections of the 500kV and 220kV transmission network, particularly during peak summer demand, with many grid stations and transformers operating beyond 80% of their rated capacity. In FY2025, 116 out of 192 transformers across 68 grid stations were overloaded, risking equipment failure, voltage instability, and frequent outages.

Key regions including Hyderabad, Islamabad, Lahore, and Multan have been consistently affected by these constraints, notably at critical grid stations like Gatti, New Multan, and Muzaffargarh. These issues have led to reliance on more expensive power generation, bypassing cheaper, available alternatives and violating the economic merit order (EMO), which prioritises low-cost power sources.

Nepra’s review also highlighted long-standing problems, with certain grid stations in Rawat, Sheikhupura, and Multan being in an overloaded condition since 2017. The review noted that these limitations have led to a failure to fully evacuate power from the Sahiwal coal-fired plant and exacerbated inefficiencies in the transmission system, particularly the south-to-north corridor.

The regulator stressed the need for urgent upgrades, including the completion of critical transmission projects and the installation of higher-capacity transformers and real-time grid monitoring systems. Nepra warned that the current transmission constraints not only impact the reliability of electricity supply but also lead to higher generation costs, which ultimately result in increased electricity tariffs for consumers.

The review pointed to the underutilisation of several transmission lines, such as the 4,000MW HVDC Matiari-Lahore transmission line, which remains significantly underused due to delays in completing associated infrastructure. The underutilisation of such lines has caused considerable financial inefficiencies, despite their operational readiness.

Nepra also highlighted the outdated Supervisory Control and Data Acquisition (SCADA) system, which has become obsolete, impairing the grid’s monitoring and control capabilities.

The regulator concluded that unless these critical transmission issues are addressed promptly, the power sector’s inefficiencies will continue to burden consumers with higher electricity costs and reduced grid reliability.