The National Electric Power Regulatory Authority (Nepra) warned that the proposed rebasing tariff for the fiscal year 2025-26 would be significantly impacted by a reduction in hydropower generation, which is expected to alter the country’s overall generation mix, BR reported. Â
This shift in the energy mix follows a sharp decline in rainfall across the country, which will affect the anticipated relief for consumers next year.
Nepra Chairman Waseem Mukhtar, testifying before the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, explained that while some relief had been expected, the decrease in hydel generation meant that the benefits for consumers would likely be less than anticipated.
The committee was briefed on the current relief available to consumers, with Rs 7.41 per unit reduction in electricity prices starting in April 2025. This reduction includes various components such as Rs 1.81 per unit from revised agreements, Rs 2.37 per unit from the Quarterly Tariff Adjustment (QTA), Rs 1.12 per unit from the Fuel Cost Adjustment (FCA), and Rs 2.12 per unit from an increase in the Petroleum Levy.Â
However, the continuation of relief under QTA and FCA will be subject to the economic conditions of the country and fluctuations in international fuel prices.
Minister for Power, Awais Leghari, informed the committee about his meeting with the Finance Minister regarding the outstanding reconciled amounts owed by provincial governments. He noted that Rs 161.472 billion is currently due from the provinces, with Punjab owing Rs 41.832 billion, Sindh Rs 67.960 billion, Balochistan Rs 41.600 billion, and Khyber Pakhtunkhwa Rs 10.080 billion. However, only Punjab had shown a willingness to reconcile the outstanding amounts.
The minister also expressed frustration over the absence of senior officials from the Pakistan Power Planning and Monitoring Company (PPMC) and the Central Power Purchasing Agency (CPPA-G), noting that junior officials were unable to provide the necessary explanations to the committee’s inquiries.
Regarding the introduction of Time-of-Use (ToU) meters, Minister Leghari shared that a recent exercise conducted in coordination with the All Pakistan Textile Mills Association (Aptma) showed that removing the ToU meter mechanism would result in an additional financial burden of Rs 35 billion on the industrial sector.
