Govt hints at new power tariff package as demand falls

Pakistan's government is exploring a new power tariff package as electricity demand has fallen by over three percent. This comes as authorities seek to collect approximately Rs1.20 per unit in additional fuel costs from consumers for June's electricity consumption.

The National Electric Power Regulatory Authority (Nepra) raised concerns during a public hearing about the performance of power sector entities. The regulator questioned the policy of excessive loadshedding, especially when demand was reportedly declining. Criticisms were also voiced regarding system constraints that limited the use of cheaper power generation capacity and outages at three nuclear power plants.

Government officials reported that electricity consumption in June was about 3.3 percent lower than the same month last year. While industrial consumption saw a 2.8 percent growth, reductions were noted across domestic, commercial, agricultural, and bulk consumer sectors. Factors contributing to the decline included the non-availability of contracted LNG, leading to more expensive spot market purchases and the use of furnace oil, thus increasing fuel costs.

Nepra Member Maqsood Anwar Khan expressed concern over reports of public protests against loadshedding, contrasting with official reports of reduced demand. Power companies confirmed loadshedding occurred in June, with revenue-based loadshedding remaining significant. Officials cited reasons for reduced demand, including solar net metering, solar conversion of tube wells, and weather conditions. The government is reportedly working on a new tariff package addressing time-of-use rates and energy storage systems.

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Concerns raised over protests in various parts of the country against excessive loadshedding while government companies were reporting a decline in demand.