The National Electric Power Regulatory Authority (NEPRA) is likely to impose an additional burden of Re0.82 per unit on electricity consumers, amounting to roughly Rs12 billion, following a hearing on a request from the Central Power Purchasing Agency (CPPA). Industry representatives have warned that this hike would deepen an already worsening energy crisis in the country.
CPPA Reports Higher Fuel Costs and Lower Consumption
During the hearing, CPPA officials reported that 12.33 billion units of electricity were sold nationwide in May, even as overall consumption fell by 4.6 percent compared to the same period last year. The estimated fuel cost for the month had been Rs8.43 per unit, but actual costs came in higher at Rs9.25 per unit, necessitating the proposed adjustment.
NEPRA member Amna Ahmed questioned the drop in consumption, asking whether load management measures were behind the decline. Officials from CPPA and the Power Planning and Monitoring Company attributed the dip instead to the Eid holidays and comparatively cooler temperatures, which reduced demand.
Peak Generation and Opposition to the Hike
The National Power Control Centre reported that peak generation in May reached 23,333 megawatts. Imran Shahid, representing Jamaat-e-Islami, rejected the proposed increase outright, arguing that consumers should not bear the cost of poor governance. He noted that the Neelum-Jhelum hydropower project, a source of relatively cheap electricity, remains offline, while severe loadshedding continues across the country. He also criticized the absence of adequate transmission infrastructure needed to deliver low-cost power.
Industrial Concerns Over Demand and Shutdowns
Rehan Javed, representing the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), questioned why electricity demand has not risen despite discounted industrial power packages. He warned that textile mills are shutting down as a result, which could have severe economic repercussions. The proposed tariff hike is expected to further strain the industrial sector, which is already grappling with high production costs and reduced competitiveness.
