Nepra alarmed at 1700MW govt power outage
These concerns were conveyed by Chairman NEPRA, Waseem Mukhtar with the concerned stakeholders in writing.
According to Chairman NEPRA, Neelum Jhelum Hydropower Project (NJHPP) was developed to make a significant contribution to Pakistan's energy supply and to offset the reliance on fossil fuels. However, since its commissioning, the plant has encountered numerous issues, including two major shutdowns. The first occurred in 2022 (July 05, 2022 to August 06, 2023), followed by a second in 2024 (May 01, 2024 to till date).
The NJHPP was shut down on May 1, 2024, due to persistent pressure drops in the Headrace Tunnel, with subsequent inspection revealing collapses, silt accumulation, invert damage, seepage, and other structural issues, rendering the plant non-operational.
Nepra spells out factors aggravating power sector woes
According to Chairman NEPRA from 2008 to 2018, electricity consumers of Pakistan, excluding KE, were charged an additional fee 'Neelum Jhelum Surcharge' at Rs. 0.1/kWh. This surcharge resulted in a total recovery of approximately Rs. 75.484 billion, which was used to finance the development of the Neelum Jhelum Hydropower Project.
'The prolonged forced outage of NJHPP, prevented it from contributing fully to the national grid and relatively expensive plants are being dispatched by the System Operator to meet system load demand. As a result, consumers are now paying an average of Rs. 0.54/kWh every month owing to the outage. This extra burden, which stems from the inability of the project to deliver its expected benefits is likely to continue for an extended period,' said Mukhtar.
Regarding the plant's restoration, it was noted by CPPA-G that after the award of the Contract the remedial works required for re-commissioning of the Project may take about two years which is quite alarming and signal that the consumers will bear extra burden for the period. The consumers will bear the contribution for around ten years to develop the Neelum Jhelum Hydropower Project.
In addition to the above, the prolonged outage of the Steam Turbine unit of Guddu 747, which went out of operation following a fire incident in July 2022, was advised repeatedly by NEPRA as in the past.
Chairman NEPRA reiterated once again that owing to efficient generation capability and availability of indigenous gas Guddu 747 holds a high ranking in the economic merit order. However, the outage has substantially reduced the generation capability of the Guddu complex and put the plant into Open Cycle operation thereby leading to reliance on more expensive and less efficient power plants.
The resultant increase in consumer-end tariffs has placed an undue financial burden on electricity consumers and till date, the cumulative financial loss attributable to the outage of Steam Turbine unit of Guddu 747 stands at approximately Rs 127 billion ($ 453 million), and this figure continues to escalate on a daily basis, he added.
He further contended that the generation facilities at Guddu complex have a pivotal role in system stability by providing reactive power support—- Mega Volt-Amperes Reactive (MVARs) and preventing the total power system collapse. However, due to prolonged forced outage the plant is unable to provide sufficient MVARs that put the system at stake and enhances its vulnerability to undesired events.
Chairman NEPRA stated that given the critical role of both generation facilities resulting in financial implications and growing consumer burden, an immediate intervention was requested to expedite rehabilitation of the Steam Turbine unit of Guddu 747 and Neelum Jhelum Hydropower Project. He added that timely action in this regard will substantially mitigate further operational challenges and prevent the additional burden from being transferred onto consumers.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
19 hours ago
- Business Recorder
Downward trend persists on cotton market
LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Saturday decreased the spot rate by Rs 100 per maund and closed it at Rs 16,200 per maund. Cotton Analyst Naseem Usman told Business Recorder that the local cotton market witnessed a mixed trend and the trading volume remained limited. He also told that the rate of new cotton in Sindh is in between Rs 16,200 to Rs 16,300 per maund and the rate of cotton in Punjab is in between Rs 16,200 to Rs 16,300 per maund. The rate of Phutti in Punjab is in between Rs 6,300 to Rs 7,400 per 40 kg and the rate of Phutti in Sindh is in between Rs 6,400 to Rs 7,400 per 40 kg. The rate of cotton in Balochistan is in between Rs 16,000 to Rs 16,200 per maund. The rate of Phutti in Balochistan is in between Rs 6,700 to Rs 7,600 per maund. Approximately, 1000 bales of Tando Adam, 800 bales of Sanghar were sold in between Rs 16,200 to Rs 16,400 per maund, 200 bales of Layyah, 200 bales of Khanewal, 200 bales of Kassowal were sold at Rs 16,200 per maund, 200 bales of Vehari were sold at Rs 16,250 per maund and 200 bales of Winder were sold at Rs 16,250 per maund. The Spot Rate Committee of the Karachi Cotton Association decreased the spot rate by Rs 100 per maund and closed it at Rs 16,200 per maund. Polyester Fiber was available at Rs 330 per kg. Copyright Business Recorder, 2025
Business Recorder
19 hours ago
- Business Recorder
Sindh objects to Centre's wheeling capacity decision
ISLAMABAD: The Sindh government has raised objections over the federal government's decision to allocate 800 MW capacity for wheeling purposes, arguing that such determinations should rest with the regulator — National Electric Power Regulatory Authority (Nepra), well-informed sources told Business Recorder. In a letter to the Power Division, Sindh's Energy Secretary Mushtaq Ahmed Soomro, conveyed the province's position on the proposed amendments to the Eligibility Criteria (Electric Power Supplier Licences) Rules, 2023. He stated that the province accepts most of the amendments, except for Rule 5(2)(b), where additional provisions should be incorporated. According to Sindh's proposal, open access charges should be recovered under the following framework: (i) Grid charges —including transmission and distribution system use charges, market and system operator fees, cross-subsidy charges, metering service charges, etc — shall be borne by consumers opting for open access until the currency of the NE-Plan or as later amended by the federal government ; and (ii) the federal government, in meaningful consultation with provincial governments, shall issue frameworks or policy guidelines for recovering stranded costs arising from market liberalization and open access. These frameworks should reflect market realities, provide incentives to facilitate wheeling, ensure transparency and competition, protect consumer interests, and advance broader economic and social policy objectives. QTA & MTA: Nepra cuts tariffs for Discos and KE Sindh further argued that in cases where bilateral trading occurs entirely within the province, the provincial government should be responsible for providing the relevant framework or policy guidelines for open access charges. The province also emphasized that determining the quantum of capacity allocation is a regulatory function and should therefore be left solely to Nepra. Additionally, Sindh proposed that where no policy framework exists, stranded costs should be paid by all bulk power consumers of a competitive supplier. These costs would mirror the total generation capacity charges recovered from comparable bulk consumers of suppliers of last resort—whether on a volumetric (kWh) basis or through fixed charges — until revised by the federal government under applicable policy and regulatory procedures. The Sindh Government requested that its recommendations be incorporated into the proposed amendments to Rule 5 before consideration by the Cabinet Committee on Legislative Cases (CCLC). Separately, the Power Division has already informed the Prime Minister that stranded cost options and proposals for socializing costs, including possible wheeling charges, have been finalized. The Cabinet Committee on Energy (CCoE) approved wheeling charges of Rs 12.55/kWh, which were later endorsed by the federal cabinet. The framework for wheeling charges on an 800 MW capacity was included in the Indicative Generation Capacity Expansion Plan (IGCEP), approved by the ISMO Board after public consultation. The competitive electricity market is scheduled to be operationalised on September 30, 2025, with Nepra to declare the Commercial Operation Date (CMoD) after issuance of guidelines on optimal wheeling charges. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
CJP's pension reaches Rs2.39m in 2024; Senate told
ISLAMABAD: In a startling disclosure, the government informed the Senate on Friday that the pension of the Chief Justice of Pakistan has ballooned to an eye-watering Rs 2.39 million in 2024 – a fourfold increase since 2010. The revelation came in a routine written reply from the Ministry of Law and Justice, led by Azam Nazeer Tarar, igniting fresh debate over judicial perks amid a backdrop of widening economic inequality. The Ministry's breakdown laid bare a consistent, steep upward trajectory: from Rs 560,000 in 2010, the pension of the country's top judge climbed annually to reach over Rs 2 million by this year. This includes notable jumps – Rs 1.005 million in 2015, Rs 1.338 million in 2018, and a leap to Rs 2.39 million just this year. The figures prompt urgent questions about fiscal responsibility and transparency in the allocation of public funds for the country's superior judiciary. Further fuelling public scrutiny, the Senate was told that the Chief Justice's widow enjoys lavish benefits – including a driver, orderly, free water supply, an exemption from income tax, and monthly allowances covering Rs 3,000 worth of telephone calls, 2,000 electricity units, and 300 litres of petrol. Critics argued these privileges, extending well beyond standard provisions, illustrate entrenched elitism within the country's corridors of power. The disclosures overshadowed proceedings as the Senate moved swiftly on other legislation, including the Petroleum Amendment Bill, 2025 and the Virtual Estates Ordinance 2025. The latter sparked visible friction when Senator Afnanullah of the ruling Pakistan Muslim League-Nawaz (PML-N) staged a walkout, accusing his own party government of intellectual theft. 'This bill is mine,' Afnan protested. 'I spent months preparing it, only for the government to block it and then present a copied version. This is outright cheating – credit must be given where it's due.' The Senate's rapid referral of these contentious bills to standing committees leaves their fate uncertain, yet the Chief Justice of Pakistan's pension hike is certain to ignite ongoing debate over judicial accountability and the prioritisation of public resources in a country grappling with economic hardship. Copyright Business Recorder, 2025
