The shutdown of Neelum Jhelum, along with power generation shortages at various plants, inadequate management, and systemic limitations, has imposed an extra financial load of Rs 262.7 billion upon electricity customers over the initial nine-month period (from July to March) of this current fiscal year.
During just the month of March, an extra financial load of Rs 104 billion was passed onto electricity customers, stated Member Technical NEPRA Rafique Ahmed Shaikh in two distinct supplementary remarks regarding the recently issued quarterly adjustments and FCA determinations from NEPRA on Friday. Despite attempts to reduce energy expenses, he noted that inadequate management practices persistently lead to higher electricity rates in Pakistan.
In his additional note attached to 3rd QTA decision, Rafique Shaikh said that the capacity claimed by XWDlSCOs for the 3rd quarter of FY 2024-25 amounted to Rs. 362.395 billion, which is significantly lower than the reference figure of Rs. 459.286 billion. During the same period, electricity sales stood at 19,968 GWh compared to a reference of 21,846 GWh in the corresponding reference period. He said inefficient GENCOs (Guddu, Muzaffargarh, and Jamshoro) received Rs1.237 billion in capacity charges without generating electricity.
Although transmission limitations prevented low-cost facilities in the south—such as Port Qasim, China Power, and Lucky Electric—from operating at full capacity, they still received Rs69.09 billion in capacity payments. This situation underscores the urgency of implementing reforms in dispatch procedures and upgrading transmission systems to prevent undue financial strain on consumers.
Regarding the March FCA for XWDiscos, he mentioned that power generation in March 2025 fell short by 8.5%, compared to the benchmark levels, largely because of ATandC-driven outages and insufficient use of ‘Take or Pay’ facilities, which increased operational expenses. During this period, the ‘Take or Pay’ thermal stations with an overall capability of 20,248 MW were operating merely at a rate of 34.29%. Improving management practices within each DISCO is crucial to substantially reduce combined technical-commercial inefficiencies. Additionally, the prolonged shutdown of Steam Turbine Unit 16 at the 747 MW Guddu Power Station—active since July 2022—led to financial losses amounting to Rs. 0.68 billion during March 2025, pushing the cumulative deficit for fiscal year 2024–25 from July through March to Rs. 6.41 billion.
Running the Guddu 747 MW power station in an open-cycle configuration resulted in decreased production from this economical energy source, necessitating that the deficit be covered by using pricier, higher-operating-cost facilities instead. This change incurred an extra expense of Rs 24 billion just in March 2025, bringing the cumulative additional expenses for the fiscal year 2024-25 up to Rs 110 billion as of March. Accelerated actions are needed to address the problem with the faulty steam turbine.
Similarly, he said that Neelum Jhelum 969 MW hydropower plant has been out of operation since May 2024. Its non-availability in March 2025 forced reliance on costlier alterative, resulting in an additional Rs. 4.5 billion in costs compared to March 2024. The total financial impact for FY 2024-25 (up to March) has reached Rs. 28 billion. Resolving the issue requires more concerted and focused efforts, he added.
Transmissions and grid system limitations resulted in losses of Rs. 0.62 billion in March 2025, raising the year-to-date financial impact to Rs. 12.31 billion for the fiscal year ending March 2025. Meanwhile, Part Load Adjustment Charges (PLAC) reached Rs. 2.6 billion in March 2025, pushing the aggregate amount to Rs. 29.8 billion for the same fiscal period up until March.
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