The National Electric Power Regulatory Authority (NEPRA) expressed frustration on Tuesday with the Power Division and its associated agencies for not updating the system to reflect shifting demand patterns. During a public hearing on CPPA-G’s Fuel Cost Adjustment (FCA) request for November 2024, NEPRA Chairman Chaudhary Waseem Mukhtar pointed out that the financial impact of partial load had increased by Rs 9 billion, with costs rising by Rs 300 million each month. He emphasized the need for a study to align the Time of Use (ToU) tariff with current demand shifts.
Mukhtar also criticized the absence of Ministry representatives at the hearing and announced that he would note this in the final determination. He instructed CPPA-G to conduct a study to address this issue.
CPPA-G’s CEO, Rihan Akhtar, agreed that demand patterns have changed on an hourly basis and confirmed that they would address the tariff misalignment either in the next tariff re-basing petition or sooner. He acknowledged that the original cost model for ToU was outdated and needed to be revised.
Further concerns were raised regarding the inefficiencies of coal-fired power plants. NEPRA Member Mathar Niaz Rana questioned why two major plants with 90 days of inventory had not been dispatched any orders, despite high working capital costs being allocated to them. CPPA-G’s CEO explained that the issue was tied to ongoing circular debt and confirmed efforts to link working capital costs to actual plant performance.
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The hearing also discussed Power Load Adjustment Charges (PLAC), where CPPA-G suggested that licensees like Gencos, Discos, and IPPs should align their meters with actual conditions. The changing load pattern over the past year was noted, with calls for investigation into its causes.
Mukhtar reiterated that planning and policy development were the responsibility of the Ministry, not NEPRA, which should be focused on regulation and decision-making. He also highlighted the ongoing reforms within the regulatory body and affirmed that NEPRA would continue to make tough decisions despite potential criticism.
The current circular debt stands at Rs 2.38 trillion, with Rs 1.6 trillion owed to Independent Power Producers (IPPs).
