ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised concerns over a 20 percent reduction in electricity sales, warning that this decline could increase capacity payments to independent power producers (IPPs), ultimately burdening consumers through quarterly tariff hikes.
During a public hearing on the Central Power Purchasing Agency-Guarantee’s (CPPA-G) petition for August 2024 fuel charge adjustments, it was revealed that total electricity generation had dropped from 15,959 GWh in August 2023 to 13,179 GWh in August 2024. CPPA-G officials noted a 20.18 percent decline in demand, attributing part of the drop to soaring electricity prices, which have hit industries particularly hard.
Nepra members expressed concern about the impact on the industrial sector, with up to a 27 percent decrease in industrial consumption. Nepra urged a comprehensive study to determine the causes behind the reduced demand, which is leading to higher consumer tariffs.
The hearing also highlighted transmission constraints at the Sahiwal Coal Power Plant, adding billions to consumers’ bills due to the National Transmission and Despatch Company’s (NTDC) inaction over the past four years.
