EU Report
ISLAMABAD: The National Power Control Centre (NPCC) has 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.
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.
