The National Electric Power Regulatory Authority (NEPRA) has requested detailed information from the Water and Power Development Authority (WAPDA) regarding water availability for the upcoming summer season. The regulator aims to assess the impact of water levels on hydropower generation and overall electricity supply.
NEPRA’s Hearing on January Fuel Price Adjustment (FCA)
The latest NEPRA hearing, chaired by NEPRA Chairman Waseem Mukhtar, focused on the January Fuel Price Adjustment (FCA). During the session, officials from the Power Division revealed that the reference fuel cost for January stood at Rs. 11 per unit, with 7.81 billion units of electricity sold during the month.
A key proposal discussed was the inclusion of agricultural tubewell consumers and households consuming up to 300 units in the FCA category. Power Division officials assured that this move would not affect other consumers and could potentially provide relief to the targeted consumer segments.
Relief in FCA Charges and Government Interventions
The Power Division further elaborated that all consumers would benefit from the reduction in FCA charges. A day prior to the NEPRA hearing, the Ministry of Power Division formally requested the regulatory authority to review the issue, emphasizing the need for consumer relief.
However, concerns remain over the imposition of an 18 percent General Sales Tax (GST) on solar consumers. Power officials stated that this matter needs further discussion with the Federal Board of Revenue (FBR), and a response will be provided after consultations.
Water Shortage Threatens Cheap Electricity Production
NEPRA has summoned WAPDA officials to present a comprehensive report on the water situation for summer in the next hearing. WAPDA officials indicated that the dead water level is expected to be one to one-and-a-half feet lower next summer, which could significantly reduce hydropower generation.
The declining water levels are likely to impact the production of cost-effective electricity, leading to an increased reliance on imported Liquefied Natural Gas (LNG) for power generation. Given the high cost of LNG imports, this shift could put additional financial pressure on consumers and the national power sector.
Winter Electricity Demand and Future Outlook
Officials noted that electricity consumption remained low in January due to the mild winter, reducing overall power demand. However, the situation is expected to change with the onset of summer, when electricity consumption typically surges.
With the summer season approaching, the country faces potential challenges in managing power supply. Reduced water reserves may lead to an increased dependency on expensive energy sources, affecting both electricity pricing and availability.
NEPRA’s Decision on January FCA Pending
Following the conclusion of the hearing, NEPRA has reserved its decision on the January FCA petition. The regulatory authority will issue a final verdict after a thorough review of the presented data and further discussions with stakeholders.
As Pakistan prepares for the summer months, close monitoring of water reserves and strategic energy planning will be crucial in ensuring a stable power supply and minimizing consumer burden. Stakeholders await NEPRA’s final decision, which will play a vital role in shaping the country’s electricity pricing and energy policies in the coming months.
