ISLAMABAD - National Electric Power Regulatory Authority (Nepra) has asked the Power Division to inform the federal government that consumers are leaving the national grid and switching to solar power owing to high tariff, as the regulator reserved judgment on Discos’ petition for hike of Rs 2.94 per unit in tariff.
In a public hearing on the petition filed by the Central Power Purchasing Agency (CPPA-G), the regulator was informed that electricity consumption has been declined by 7.5 percent, in March 2024, compared to reference targets, underscoring a substantial reduction in power consumption nationwide.
A petition submitted to Nepra by the CPPA, on behalf of the Discos, sought an increase of Rs 2.94 per unit in tariff on account of fuel charges adjustment (FCA) for the month of March. Nepra has reserved the judgment and will announce it after further scrutiny.
During hearing, Nepra’s member Sindh, Rafeeq Sheikh questioned officials of Central Power Purchasing Agency (CPPA) and the Power Division, seeking clarification on critical aspects of Pakistan’s energy landscape.
Sheikh attributed the price hike in tariff to a decline in electricity sales in March.
He attributed the consumer shifts to solar electricity due to the high cost of electricity and asked the official of the Power Division to inform the government regarding the trend of people leaving the national grid and switching to solar.
Officials from the National Power Control Center (NPCC) reported a 7.5 percent decrease in power demand in March 2024. Over the year, domestic consumer demand fell by 11.3 percent, and the industrial sector by 4.5 percent, the official maintained.
Upon this, Nepra’s member Sindh emphasized that the authority had received numerous complaints regarding violations of the economic merit order of power plants and assured that NEPRA was reviewing these complaints. Additionally, insights into power generation from Guddu 747-megawatt plants shed light on the nation’s electricity production landscape. NEPRA official pointed out that power consumers could have saved Rs 580 million if electricity were generated through the Guddu Combine Power Plant.
Seasonal impacts on the North-South transmission system were discussed, along with variations in production from hydropower and nuclear sources. The impact of LNG (liquefied natural gas) and diesel revenue on tariff adjustments was emphasized, alongside the increasing influence of solarization on the energy grid. It was informed that the peak hours of solar energy impact, spanning from 9 AM to 5 PM, with subsequent load increases observed from 6 PM to 9 AM, posing technical challenges to grid stability. To maintain grid stability, the RLNG-based power plants are kept active, the official maintained.
Member Sindh asked the CPPA/NTDC and Power Division what so far you have done to increase the electricity demand. You should have asked the government (Power Division) to devise a policy for increasing demand, especially for the industrial sector.
On the asking of Rafeeq Sheikh, the CPPA representative said that in March, the national grid procured 55 million units from net metering arrangements.
“Net metering is impacting our system, and the government should introduce a new time of use (TOU) for the power consumers, as the grid pattern is changing,” said an official of the Power Division. It is under consideration by the government and NEPRA is also onboard, he added. Emphasizing the impact of solar energy integration, Power Division officials highlighted a significant divergence in demand patterns and operational dynamics, particularly during sunset hours when electricity load experiences a sudden surge.
Anticipating future challenges, officials stressed the imperative of assessing evolving grid patterns to accommodate changing consumption behaviors and ensure grid stability.
However, amidst discussions on energy strategies, concerns were raised regarding the operation of aging power plants, with member Rafeeq Sheikh lamenting the continued operation of expensive plants at the expense of consumers.
Sheikh reiterated the adverse effects of operating costly plants on consumers, pointing to recurrent issues without apparent solutions. Furthermore, authorities acknowledged discrepancies in power production from plants in Sahiwal and Lucky, raising questions about the efficacy of existing infrastructure and management practices.
The official, however said that some electricity was generated from the Sahiwal Coal Plant recently.