ISLAMABAD: The government’s three-month Winter Incentive Package has led to a 1.5% increase in electricity consumption during December 2024, with an additional 226 million units consumed, including in the KE jurisdiction.
This information was shared during a public hearing chaired by Nepra Chairman Chaudhry Waseem Mukhtar, regarding the Fuel Charges Adjustment (FCA) for Discos in December 2024. The CPPA-G has requested a negative adjustment of Rs 1.04 per unit, which would result in a reduction of Rs 7.78 billion in consumer costs.
However, CPPA-G’s CEO, Rihan Akhtar, clarified that the FCA of Rs 0.75 per unit, applicable for November 2024 and passed on in January 2025, will be replaced by the negative FCA of Rs 1.04 per unit for December 2024. This means a net reduction of Rs 0.28 per unit will be passed on to consumers in their February bills. The negative adjustment will not apply to consumers using up to 200 units per month.
Power generation: Much left desired
Akhtar further briefed the Authority that the generation position was largely as projected, with only slight variations recorded. He noted that three coal-fired power plants — China Power Hub Generation Company, Huaneng Shandong Ruyi Energy, and Lucky Electric Power Company—remained at zero plant factor, while Port Qasim Electric Power Company operated at a 9% plant factor.
Arif Bilwani, one of the interveners, expressed concern over the lack of coordination among public sector power-related entities under the Power Division. He pointed out that these entities often shift responsibility onto one another, citing rules of business.
In response, a representative from the National Power Control Centre (NPCC) explained that nearly all power plants were operated as per the Economic Merit Order (EMO), except for RLNG plants, which were operated due to load factors.
CPPA-G Market Operation Fee (MOF): In another hearing, CPPA-G sought Nepra’s approval for a Market Operation Fee of Rs 3.85 per kW/month for FY 2024-25, intended to cover legal charges. The CPPA-G also requested that legal charges be included in the quarterly periodic tariff adjustments for XW-Discos.
Bilwani raised concerns over CPPA-G’s performance, questioning why the organization, which has failed to protect consumer rights, should be allowed a substantial increase in its fee. He also criticised Nepra’s performance in safeguarding consumer interests.
In the event that the Authority does not approve the legal charges, the CPPA-G requested approval for an alternative fee of Rs 5.19 per kW/month for FY 2024-25. Additionally, the Authority was asked to approve the actualization of expenditures based on the audited financial statements for FY 2023-24.
The CPPA-G’s CEO also requested approval for a 33.3% increase in expenditures for FY 2025, raising the budget to Rs 301 million from Rs 226 million in FY 2024. These expenses cover rent, taxes, power, lighting, communication, office operations (outsourced services), Board of Directors and auditor fees, environmental and social governance, Nepra licence fees, and other costs (including travel, office supplies, and advertising). The Nepra raised concerns about a 221% increase in expenditure for IT equipment and software, from Rs 29 million in FY 2024 to Rs 93 million in FY 2025. In response, the CEO of CPPA-G explained that the entity uses original software to mitigate risks associated with pirated versions.
Copyright Business Recorder, 2025
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