In Islamabad, the National Electric Power Regulatory Authority (Nepra) recently censured power companies for inefficiencies and their reliance on expensive power plants, despite cheaper alternatives being available. During a public hearing led by Nepra Chairman Waseem Mukhtar, concerns were raised over the underutilization of cost-effective plants, leading to a rise in average fuel costs. Notably, hydropower supply exceeded estimates in the reference tariff, yet cheaper plants remained inactive, contributing to higher fuel costs. Similarly, coal and gas-based power generation saw cost escalations due to operational dynamics and increased gas prices.
The Central Power Purchasing Agency (CPPA) and Power Division attributed the use of expensive plants to transmission constraints and maintenance issues. Consequently, CPPA proposed an additional Rs2.94 per unit for May 2024 bills, a 46% increase over previous costs. This move comes amid consumer dissatisfaction over escalating bills despite reduced consumption patterns, highlighting challenges in forecasting fuel costs accurately. Nepra has agreed to a public hearing on April 26 to address these issues.
Story by Khaleeq Kiani
