Staff Report
ISLAMABAD – A routine public hearing at the National Electric Power Regulatory Authority (NEPRA) turned into a sharp critique of the federal government’s power sector policies on Wednesday, as industry representatives expressed frustration over non-transparent tariff implementation and rising costs of doing business.
The hearing was held on a petition by the Central Power Purchasing Agency (CPPA-G), which sought a Rs 0.65 per unit reduction in monthly fuel charges adjustment (FCA) for June 2025. The CPPA claimed actual generation cost for the month dropped to Rs 7.68 per unit, compared to the reference cost of Rs 8.33 per unit. If approved, the proposed cut could offer over Rs 8 billion in relief to consumers across all distribution companies (DISCOs), excluding lifeline customers.
But private sector participants questioned why previously announced relief—particularly a Rs 1.71 per unit cut linked to petroleum levy adjustments—was never reflected in actual tariffs. With the industrial tariff reportedly climbing back to Rs 35 per unit, they accused the federal government of withholding tariff reductions and mismanaging fuel resources.
Critics also pointed to the continued supply of cheaper domestic gas to the inefficient Jamshoro power plant, instead of diverting it to more efficient facilities like Halmore and Quaid-e-Azam thermal power plants. In response, NEPRA’s case officers claimed that redirection was not possible under current supply arrangements.
Another participant raised objections over increased tariffs for bagasse-based power plants operated by sugar mills, questioning why a by-product was being treated on par with imported coal. NEPRA clarified that the higher rates were due to legacy payment issues, not preferential treatment.
Adding to the concerns, NEPRA confirmed that the Neelum-Jhelum hydropower project will remain disconnected from the national grid for at least two more years due to unresolved technical challenges.
NEPRA Chairman expressed concern over the absence of Power Division officials and directed that complete statistics on DISCOs’ monthly loan defaults and circular debt positions be submitted before the upcoming quarterly adjustment hearing on August 4.
According to CPPA data, a total of 13,744 GWh was generated in June, with 13,310 GWh delivered to DISCOs after 2.97% transmission losses. Hydropower led generation at 39.36%, followed by RLNG, coal, and nuclear energy. The costliest input remained electricity imported from Iran at Rs 22.51 per unit, while solar power remained free of cost.
NEPRA is expected to decide on the FCA adjustment within the next few days.
