ISLAMABAD: The National Power Control Centre (NPCC) Thursday warned that hydel generation this summer will be lower than last year due to reduced water and snow availability, leading to increased reliance on expensive RLNG-fired electricity.
This information was shared by an NPCC representative during a public hearing at NEPRA regarding the negative Fuel Charges Adjustment (FCA) request submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G) for January 2025.
CPPA-G has requested a negative adjustment of Rs 2.003/kWh to be applied in March 2025, replacing the current negative FCA of Rs 1.228/kWh effective in February. As a result, consumers will see a net decrease of Rs 0.74/kWh in their electricity bills for March 2025.
Pakistan’s power generation decreases in January as demand dips
The hearing, presided over by Nepra Chairman Waseem Mukhtar, led to the decision to summon the Water and Power Development Authority (WAPDA) to provide an updated status on water availability for the summer. The expected reduction in hydel generation will also affect the energy mix and reference projections.
An NPCC representative explained that the dead storage level of water is between 2 to 4 feet above the dead level. This low water level will result in a reduction in cheap power generation, as inflows are also expected to fall short of projections.
Chief Executive Officer (CEO) of CPPA-G, Rihan Akhtar, reported that the actual fuel rate for January was Rs 11.0081/kWh, while the reference fuel rate was Rs 13.0100/kWh. Distribution companies (Discos) sold 7.82 billion units in January 2025, which resulted in an impact of Rs 15.65 billion.
Akhtar also noted a 2% reduction in electricity consumption in January 2025 compared to the same month in 2024, with the most significant decreases observed in the industrial and agricultural sectors. The main reason for reduced agricultural consumption was the shift from grid electricity to solar power, while the industrial sector’s reduction in consumption had various underlying causes.
NPCC further informed the Authority that total consumption in January 2025 had decreased by 4.4% compared to January 2024, with a 2% year-on-year reduction.
Additional Secretary of the Power Division, Mehfooz Bhatti, requested that the Authority extend the negative FCA adjustment to agricultural tube well consumers and domestic consumers using up to 300 units per month, arguing that it would not impact other users. He referred to a letter sent by the Power Division, urging the Authority to include these categories in the negative FCA scheme.
In response to a question, Bhatti stated that the Power Division would need to consult the Federal Board of Revenue (FBR) regarding the collection of 18% GST from solar users, as per a ruling by the Federal Tax Ombudsman. He promised to follow up on this matter with the FBR.
An intervener, Aamir Sheikh said that during the Chairman raised point that there was not much rainfall nor snow this year and dams are nearly empty.
Copyright Business Recorder, 2025
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