Power consumption growth: GEPCO cites net metering as major hurdle

ISLAMABAD: The Gujranwala Electric Power Company (GEPCO) on Wednesday identified net metering as one of the key obstacles hindering the growth of electricity consumption supplied by it.

Presenting its five-year (2024–2030) investment plan, which amounts to Rs 100 billion, before the National Electric Power Regulatory Authority (NEPRA), GEPCO’s team outlined their goal to reduce electricity losses from 8.85 percent to 8.65 percent over the next five years.

The company also anticipates an annual electricity demand increase of 2.4 percent during this period. Furthermore, GEPCO projects net metering capacity will grow by 1,176 percent, from 224 MW to 2,859 MW over the next five years.

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During the public hearing, NEPRA Chairman inquired about the impact of a potential decrease in battery prices on this demand. A GEPCO official responded that they do not have such estimates. They also noted that the effect of privatization on the five-year plan had not been evaluated.

One NEPRA member expressed concern about the significance of the plan if the discos are privatized. Despite a substantial investment of Rs 49 billion in the system—compared to the originally planned Rs 34 billion—the privatization process could still impact the effectiveness of these investments.

In its investment plan, GEPCO stated that as Pakistan’s power sector (PPS) undergoes continuous reforms, it is positioned to contribute to the evolving competitive wholesale electricity market under the Competitive Trading & Bilateral Contract Market (CTBCM) regime. GEPCO plans to transition from being a single territorial electric power service provider to a multirole service provider, taking on the roles of both “Electric Power Supplier” and “Power Distributor.”

According to regulations, GEPCO will continue as the “Supplier of Last Resort” to ensure reliable, uninterrupted power supply for all customers within its service area.

Currently, GEPCO holds separate licenses from NEPRA for its distribution and supply businesses. Additionally, GEPCO is registered with the Market Operator (MO) as a Distribution Service Provider in its role as a Distribution Network Operator and as a Market Participant in its role as the Supplier of Last Resort.

As a Power Distributor (Distribution Network Operator, DNO), GEPCO is committed to providing interconnection facilities and open access to its system for all intending users (Market Participants), including, but not limited to, eligible generation companies, bulk power consumers, traders, competitive electric power suppliers, and distributed generation, at reasonable and affordable prices. The company ensures that these services are offered impartially, without favoritism or discrimination.

In its role as an Electric Power Supplier, GEPCO is prepared to face competition at the wholesale market level and aims to retain base-load Bulk Power Consumers (BPC). The company emphasized that its commercial priorities will not undermine the rights of its embedded regulated customers.

GEPCO has already submitted its petition for Use of System Charges (UoSC) for open access to NEPRA for approval. Additionally, draft Use of System Agreements (UoSA) and Connection Agreements (CA) have been submitted to NEPRA for necessary approval.

Copyright Business Recorder, 2025