ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised serious concerns over a financial burden exceeding Rs1.5 per unit on electricity consumers, stemming from inefficient operations of key generation and transmission projects during the first eight months of the current fiscal year (July–February).
In a special report to the federal government, Nepra’s Technical Member from Sindh, Rafique A. Shaikh, highlighted persistent underutilisation of major assets including the 4,000MW Lahore-Matiari Transmission Line, the 969MW Neelum-Jhelum Hydropower Plant, and the 747MW Guddu Power Plant. He emphasized that these inefficiencies are significantly inflating costs for consumers.
Mr. Shaikh noted that thermal power plants operated at only 24% capacity in February 2025, while the HVDC transmission system ran at just 23%—a drastic decline from 46% utilisation recorded in September 2024. Despite this, consumers are being billed as if these systems were operating at full capacity.
He also highlighted that cheaper coal-based plants in the south remain underused due to transmission constraints, forcing reliance on more expensive northern-based plants to maintain grid stability. This misallocation has driven up power costs.
The 747MW Guddu Power Plant, operating in an open-cycle mode, alone caused a Rs22 billion loss in February, with cumulative losses reaching Rs107 billion in FY25. Meanwhile, the continued closure of the Neelum-Jhelum project led to an additional Rs0.8 billion loss in February and Rs23.7 billion overall this fiscal year.
System constraints and contractual obligations in February added Rs1.98 billion in losses, contributing to a cumulative financial impact of Rs11.69 billion over eight months. Mr. Shaikh called for urgent rehabilitation of the Guddu and Neelum-Jhelum plants and rapid resolution of south-north transmission limitations.
K-Electric Sales and Cost Concerns
Separately, Mr. Shaikh flagged an 8% year-on-year decline in K-Electric’s January 2025 electricity sales, with industrial sales falling by 8.3%. He urged immediate investigation into the decline.
He also warned that delays in completing interconnection works between the National Transmission and Dispatch Company (NTDC) and K-Electric are pushing up fuel costs. In January, K-Electric’s own plants, generating at Rs23.83 per unit, provided just 4% of its energy mix, while 89% came from the NTDC at a significantly cheaper Rs11.15 per unit.
He stressed the urgency of completing the interconnection to improve cost-efficiency and system performance, advising both parties to resolve regasified liquefied natural gas (RLNG) obligations and technical studies to ensure long-term sustainability.
Story by Khaleeq Kiani
