In a shocking revelation, the National Transmission and Despatch Company (NTDC) has disclosed that consumers in Pakistan are paying for a capacity of 40,000 megawatts (MW) of electricity despite utilizing only 12,000-13,000 MW. This means that consumers are overpaying for electricity, with a potential relief of Rs1.91 per unit expected in September bills.
The NTDC officials made this disclosure during a public hearing conducted by the National Electric Power Regulatory Authority (Nepra) in Islamabad. The hearing was held to discuss the fuel adjustment for the month of July 2024, with the Central Power Purchasing Agency (CPPA) requesting a reduction of 31 paisa per unit in the price of electricity.
The CPPA officials noted that global fuel prices are continuing to decline, and if economic indicators remain stable, electricity prices are expected to see only a slight adjustment. However, the NTDC officials were unable to answer questions regarding the cost of reducing system losses and how much burden it placed on consumers.
Nepra members expressed their displeasure over the lack of response and called for an analysis to determine responsibility. The authority concluded the hearing and reserved its decision, with a final ruling to be issued following further examination of the data.
In addition to the fuel price adjustment, consumers are also expected to face an increase in electricity rates of up to Rs1.89 per unit on account of quarterly adjustment. However, combining the two adjustments, consumers are expected to receive a relief of Rs1.91 per unit in their September bills.
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