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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised concerns over the reduced electricity consumption growth of 3.18 percent during the last six years, ie, from 2018 to 2024, due to exorbitant prices, micro and macroeconomic variables, massive solarization and reduction of cheap generation from hydel sources.

The issue of reduced growth in electricity consumption came under hectic debate at a public hearing in Nepra held to consider CPPA-G’s request for negative adjustment of Paisa 31 per unit in FCA for the month of July 2024 as a result of which an amount of Rs 4.5 billion is to be refunded to the consumers of Discos, who use above 300 units as consumers using up to 300 units’ per month are already enjoying a subsidy. Negative adjustment will be passed on to the consumers in the bills of September 2024.

Discussion on reduced demand was triggered from a presentation given by Wajid Chattha, representative of National Power Control Centre (NPCC), the System Operator, who apprised the Authority that total energy generation from national grid was 13,740 GWh in July 2018, of which day light generation (from 8;00 am to 16.00 pm) stood at 5,250 GWh, which was 38 per cent of total generation during day light hours.

Power tariff hike, loadshedding: Consumers heap criticism on Nepra at hearing

However, In July 2024, total generation recorded at 14,818 GWh with day light generation of 5,357 GWh which was 36 per cent of day light hours’ generation.

These statistics attracted immediate reaction from the NEPRA Authority, which was already concerned with reduced growth in consumption of electricity, due to its exorbitant prices, rampant solarization across the country and system constraints. Consumption declined by 3 per cent in July 2024 against the reference.

Member (Tariff and Finance) Mathar Niaz Rana argued that the figures presented by the NPCC do not match the population growth, questioning the validity of figures.

He asked one of the officials, Muhammad Yousaf, who deals with technical matters, to analyse the electricity generation figures of NPCC. He further stated that since growth in consumption is very marginal, who will consume generation from new projects?

Muhammad Yousaf stated that the generation figures presented by the NPCC are inaccurate, and suggested that generation from solarization should also be made part of total generation. He, however, was of the view that no authentic data of net metering and off grid (three phase meters) is available with the Discos.

Intervening in the discussion, Chairman Waseem Mukhar explained that NPCC has shared generation statistics of national grid.

The Authority also witnessed discussion on sale of expensive generation of peak times at lower rates to the consumers due to change in consumption patterns as sale of Discos has reduced due to installation of solar PVs in the country. However, CPPA-G officials explained that FCA is calculated on the basis of entire generation hence, there is no question of sale of expensive electricity to consumers.

Sharing issues in transmission of generation South to North, NPCC representative, Wajid Chattha said that only 4500 MW electricity can be transmitted from cheap sources in South due to which expensive RLNG plants in North are operated as the main load centre is Punjab.

Member (Technical) Sindh Rafique Ahmad Shaikh raised the question as to how much investment was required to remove constraints in transmission system which is forcing the System Operation to operate expensive RLNG plants which are overburdening the consumers. He enquired if there was any plan to remove these constraints. NPCC representative said that a plan is already in hand to deal with constraints.

Chairman NEPRA directed CEO CPPA-G to make peak hours timing part of new tariff guidelines, which are being finalized by the Federal Government.

Copyright Business Recorder, 2024

Comments

Comments are closed.

DR.A.BASHIR Aug 29, 2024 09:27am
A UNIFORM TARRAF STRUCTURE,DOING AWAY WITH SLABS,& FINDING OTHER WAYS TO HELP POOR CONSUMERS,!!!!???
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Sagar Baloch Aug 29, 2024 10:34am
Our bill was 65 to 85k.solar is one time investment if you have space.we invested 16 lakh.16 lakh ÷ 70k = 22 month.our inverter is in 7 year warranty with plates 15.capacity 10 kva w batteries.
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Khadim Hussain Aug 29, 2024 11:37am
Today a happiest day of my life that power consumption has reduced. A day will come when Pakistani will not consume wapda. WAPDA employees are all criminal and looting Pakistanis
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Annie Aug 29, 2024 11:38am
Shutting down of industries may be a significant factor in reduced consumption
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ali Aug 29, 2024 12:07pm
so they thought they can just keep increasing prices to one of the highest in the world and consumption will still increase?
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Mumtaz Malik Aug 29, 2024 12:16pm
It is clear that NEPRA, often seen as an advocate for these agencies, overlooks the serious issues faced by the people. The situation is alarming—worn-out cables and frequent power outages during even light rain are common, particularly with GEPCO.
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Mumtaz Malik Aug 29, 2024 12:17pm
This raises the question: why hasn't the system been upgraded to reduce these losses? Instead, the burden of high electricity costs is unfairly placed on the poor people of Pakistan, who are innocent and often powerless. They are compelled to pay their electricity bills by any means necessary, fearing that their meters will be forcibly taken away by the authorities if they don't comply.
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Aam Aadmi Aug 29, 2024 12:40pm
What about power outage of 5-8 hours twice a week at my place in addition to the daily switch on-switch off of light many times a day? Can NEPRA explain?
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Builder Aug 29, 2024 01:04pm
They can't stop solarisation of domestic consumers. Better sell extra production to dying SME sector at reduced price and they will be even. Depends whether they have brains.
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Fiaz Aug 29, 2024 01:17pm
Sub bakwas hai Light sary din main sirf 8 ghanty daity hain jhoot per jhoot Load shedding say industries band ho gayen or tashweesh k daramy kar rahy hain jhooty log
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Waheed ud din Aug 29, 2024 01:51pm
If NPPC data is not correct then who would have the correct figure. Solar is showing it effects. Please South - North power transfer limit, please review the study carefully,
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Imran Aug 29, 2024 02:09pm
These are criminal organizations that are holding the people of Pakistan hostage
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Mumtaz Malik Aug 29, 2024 02:37pm
Pakistan's dilemma is a surplus of power generation capacity – a problem it has avoided since the late 1990s. “We are producing much more than we need,” Tabish Gauhar, the prime minister's special
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Mumtaz Malik Aug 29, 2024 02:38pm
Does Pakistan have excess electricity? Pakistan's Energy Enigma; A Historical Analysis - Macro Pakistani Pakistan's electricity generation will likely supersede its energy demand in the upcoming years
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Mumtaz Malik Aug 29, 2024 02:38pm
Does Pakistan have excess electricity? Yes, you read it correctly; Pakistan is producing more electricity than it needs.
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Mumtaz Malik Aug 29, 2024 02:41pm
According to the Pakistan Economic Survey 2021–22, the installed electricity generation capacity reached 41,557 MW in 2022. The maximum total demand coming from residential and industrial estates,
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Mumtaz Malik Aug 29, 2024 02:41pm
And industrial estates stands at nearly 31,000 MW, whereas the transmission and distribution capacity is stalled at approximately 22,000 MW.
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Mubashir Munir Aug 29, 2024 03:15pm
NEPRA is working for mafias it. did not care for public please depute professionals who care for public and not for mafias this government is also a mafia we ask government to improve its working
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Sikander Aug 29, 2024 03:36pm
Get rid of IPPs. It's the only solution. Bring the cost of electricity down. Otherwise, majority will shift to solar energy and Discos will have no consumers.
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Syed Hasan Habib Aug 29, 2024 08:03pm
There seems to be serious issues with the data collection. Solar panels imported year on year can give power demand. The transmission issues are not attended and theft is rampant.
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Lisqatali Aug 29, 2024 08:11pm
The only solution is reduction in price of electricity by kicking off IPPs, the zionists of power, finish peak hours high rate rather adopt uniform slab.
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Habib Malik Aug 29, 2024 08:22pm
With such high electricity prices what NEPRA expects from the consumers. Not everyone is in government to enjoy unlimited perks at the cost of common man's sweat and blood.
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Asim Sheikh Aug 29, 2024 09:57pm
@Annie, good point
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AK Aug 30, 2024 02:11am
Nepra is the issue in this country,did not made proper plans for cost effective energy solutions. They lack basics of business and economics model "demands is directly proportional to cost of life"
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Hijazi Aug 30, 2024 05:27am
@Annie, electricity should be made with solar and wind and should be gree for industry
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Hijazi Aug 30, 2024 05:30am
Electricity should be generated through solar, wind and geothermal. Should be sold cheap to household and free to small industry
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Imran Sarr Aug 30, 2024 04:10pm
It is sad to see all comments show trace of hope that existing setup and controller should fix the issue. As usual, shallow thinking by the Pakistani society, not their fault.
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Imran Sarr Aug 30, 2024 04:25pm
@Lisqatali, unbelievable, always blame others.
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