[
Authority defends ‘collective wisdom’ as hearing participants question tariff revision to Rs32 per unit
Prior approval to NEPRA K-electric consumer may seen a huge relief over electricity bills. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) on Wednesday came under intense questioning over its revised tariff decision for K-Electric (KE), as participants at a public hearing challenged the regulator’s consistency and transparency.
“You have given a decision to increase the tariff up to Rs39 per unit and then revised the KE tariff down to Rs32 per unit, which is a big difference,” an intervener remarked, questioning the collective wisdom of Nepra during a hearing convened to review fuel cost adjustments for September 2023.
Nepra held the public hearing to consider a request from the Central Power Purchasing Agency – Guaranteed (CPPA-G) seeking a reduction of Rs0.3681 per kilowatt-hour (kWh) on account of fuel adjustment for September 2025.
One intervener pointed out that the difference between the two KE tariff decisions had raised serious questions about the regulator’s methodology. “Is this the collective wisdom of Nepra in the case of KE?” the participant asked.
“Yes, this is the collective wisdom of Nepra, as all members have signed the decision,” responded Member (Law) Amina Ahmad, who chaired the hearing. She clarified that Nepra had no role in the subsidies being provided by the federal government, noting that such policy decisions were outside the regulator’s jurisdiction.
During the session, CPPA-G officials also faced tough questions over the use of furnace oil for power generation. Officials explained that a blast in the Sui Northern Gas Pipelines Limited (SNGPL) network had reduced liquefied natural gas (LNG) supplies from 700 million cubic feet per day (mmcfd) to 400 mmcfd, forcing the use of furnace oil to maintain system stability.
They further informed the authority that the Sahiwal coal power plant had been operating partially during September, while several LNG plants had gone on forced shutdowns towards the end of the month.
Officials said peak electricity demand had reached 22,000 megawatts during the period under review, which required additional furnace oil generation to ensure supply continuity.
It was also revealed that the Uch Power Plant had stopped taking gas supplies from the Oil and Gas Development Company Limited (OGDCL), which had raised concerns and called for diverting gas to other consumers. However, CPPA-G representatives stated that they had not received any formal communication on the issue.
Data submitted by CPPA-G showed that total energy generation during September 2025 stood at 12,592 gigawatt-hours (GWh). Hydel power accounted for the largest share at 37.99%, followed by nuclear at 17.69%, re-gasified LNG (RLNG) at 14.41%, and local coal at 9.56%.
The reference fuel cost was recorded at Rs7.6554 per kWh, while the actual cost stood at Rs7.28 per unit, resulting in a proposed reduction of Rs0.3681 per kWh. According to CPPA-G, the adjustment was driven primarily by fluctuations in fuel availability and cost.
Hydropower remained the cheapest source of generation at Rs0.1563 per kWh, while imported coal and RLNG were among the costlier inputs, with average prices of Rs13.7379 and Rs21.1927 per kWh, respectively.
Imported electricity from Iran, though contributing minimally to the grid, remained the most expensive at Rs23.8903 per kWh.
