ISLAMABAD: The government’s three-month Winter Incentive Package led to a 1.5% increase in electricity consumption in December 2024, with an additional 226 million units consumed, including in K-Electric’s jurisdiction.
This was revealed during a public hearing chaired by NEPRA Chairman Chaudhry Waseem Mukhtar on the Fuel Charges Adjustment (FCA) for December 2024. The Central Power Purchasing Agency-Guaranteed (CPPA-G) has proposed a negative adjustment of Rs 1.04 per unit, translating to a Rs 7.78 billion reduction in consumer costs.
CPPA-G CEO Rihan Akhtar explained that the previously approved FCA of Rs 0.75 per unit for November 2024, passed on in January 2025, will be replaced by the negative FCA of Rs 1.04 per unit for December. This results in a net reduction of Rs 0.28 per unit for consumers in their February bills. However, the negative adjustment will not apply to those using up to 200 units per month.
Regarding power generation, Akhtar noted that projections remained largely accurate, with minor deviations. He highlighted that three coal-based power plants—China Power Hub Generation Company, Huaneng Shandong Ruyi Energy, and Lucky Electric Power Company—operated at zero plant factor, while Port Qasim Electric Power Company functioned at only 9%.
During the hearing, intervener Arif Bilwani raised concerns over the lack of coordination among power sector entities under the Power Division, citing frequent responsibility shifts between them. A National Power Control Centre (NPCC) representative defended the sector’s operations, stating that most power plants adhered to the Economic Merit Order (EMO), except for RLNG plants, which were utilized due to load factors.
CPPA-G Seeks Market Operation Fee Hike
In a separate hearing, CPPA-G requested NEPRA’s approval for a Market Operation Fee of Rs 3.85 per kW/month for FY 2024-25 to cover legal charges, proposing that these be included in XW-Discos’ quarterly tariff adjustments. If denied, CPPA-G suggested an alternative fee of Rs 5.19 per kW/month.
Bilwani criticized CPPA-G’s performance, questioning why an organization failing to protect consumer rights should receive a fee hike. He also challenged NEPRA’s effectiveness in safeguarding consumer interests.
Additionally, CPPA-G sought approval for a 33.3% increase in expenditures for FY 2025, raising the budget to Rs 301 million from Rs 226 million in FY 2024. NEPRA expressed concern over a 221% increase in IT equipment and software costs—from Rs 29 million in FY 2024 to Rs 93 million in FY 2025. CPPA-G’s CEO defended the expenditure, citing the need for original software to mitigate security risks associated with pirated versions.
NEPRA is expected to review these requests before finalizing its decision.
Story by Mushtaq Ghumman
