Nepra approves revision in electricity tariff

This adjustment is part of an early rebasing of the national tariff regime and a revision of peak and off-peak timings. The National Electric Power Regulatory Authority (NEPRA) has approved a negative fuel cost adjustment (FCA) of 63 paise per unit for electricity consumed in November 2024.

This adjustment replaces the Rs1.14 negative FCA applied in December, resulting in a net increase of 51 paise per unit for January 2025. During a hearing led by NEPRA Chairman Waseem Mukhtar, concerns were raised regarding inefficiencies in the power sector. 

Mukhtar criticized public sector entities for an eight-month delay in completing Lahore-North grid facilities and highlighted the low utilization rates of the Matiari-Lahore Transmission Line. Consumers are thus forced to pay full charges for infrastructure that is underused.

The Central Power Purchasing Agency (CPPA) reported Rs47 billion and Rs56 billion in partial load adjustment charges (PLAC) for 2023 and 2024, respectively. These charges were largely due to low demand, changing consumption patterns caused by high tariffs, and the growing use of solar energy.

In response, NEPRA has ordered an inquiry into the delays in transmission projects and directed a technical study to address the shifting demand patterns. Additionally, it was revealed that some coal-based plants received excessive working capital despite low operational capacity, prompting calls for rationalizing these costs.

Local coal-based power generation also faced challenges, particularly due to delays in the Thar Coal Mine expansion. NEPRA has urged the government to resolve railway-related issues to improve coal transportation and help lower tariffs.

In November 2024, domestic fuel sources accounted for a record 82.3% of power supply, with hydropower contributing 35.61% and nuclear power 20.61%. Local coal’s share increased to 12.68%, while imported coal decreased to 5.94%. The average fuel cost for November was Rs7.23 per unit, lower than the Rs9.44 per unit in the same month last year, resulting in a 63 paise per unit refund for consumers.