ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised concerns over the reduced electricity consumption growth of 3.18 percent during the last six years, ie, from 2018 to 2024, due to exorbitant prices, micro and macroeconomic variables, massive solarization and reduction of cheap generation from hydel sources.
The issue of reduced growth in electricity consumption came under hectic debate at a public hearing in Nepra held to consider CPPA-G’s request for negative adjustment of Paisa 31 per unit in FCA for the month of July 2024 as a result of which an amount of Rs 4.5 billion is to be refunded to the consumers of Discos, who use above 300 units as consumers using up to 300 units’ per month are already enjoying a subsidy. Negative adjustment will be passed on to the consumers in the bills of September 2024.
Discussion on reduced demand was triggered from a presentation given by Wajid Chattha, representative of National Power Control Centre (NPCC), the System Operator, who apprised the Authority that total energy generation from national grid was 13,740 GWh in July 2018, of which day light generation (from 8;00 am to 16.00 pm) stood at 5,250 GWh, which was 38 per cent of total generation during day light hours.
Power tariff hike, loadshedding: Consumers heap criticism on Nepra at hearing
However, In July 2024, total generation recorded at 14,818 GWh with day light generation of 5,357 GWh which was 36 per cent of day light hours’ generation.
These statistics attracted immediate reaction from the NEPRA Authority, which was already concerned with reduced growth in consumption of electricity, due to its exorbitant prices, rampant solarization across the country and system constraints. Consumption declined by 3 per cent in July 2024 against the reference.
Member (Tariff and Finance) Mathar Niaz Rana argued that the figures presented by the NPCC do not match the population growth, questioning the validity of figures.
He asked one of the officials, Muhammad Yousaf, who deals with technical matters, to analyse the electricity generation figures of NPCC. He further stated that since growth in consumption is very marginal, who will consume generation from new projects?
Muhammad Yousaf stated that the generation figures presented by the NPCC are inaccurate, and suggested that generation from solarization should also be made part of total generation. He, however, was of the view that no authentic data of net metering and off grid (three phase meters) is available with the Discos.
Intervening in the discussion, Chairman Waseem Mukhar explained that NPCC has shared generation statistics of national grid.
The Authority also witnessed discussion on sale of expensive generation of peak times at lower rates to the consumers due to change in consumption patterns as sale of Discos has reduced due to installation of solar PVs in the country. However, CPPA-G officials explained that FCA is calculated on the basis of entire generation hence, there is no question of sale of expensive electricity to consumers.
Sharing issues in transmission of generation South to North, NPCC representative, Wajid Chattha said that only 4500 MW electricity can be transmitted from cheap sources in South due to which expensive RLNG plants in North are operated as the main load centre is Punjab.
Member (Technical) Sindh Rafique Ahmad Shaikh raised the question as to how much investment was required to remove constraints in transmission system which is forcing the System Operation to operate expensive RLNG plants which are overburdening the consumers. He enquired if there was any plan to remove these constraints. NPCC representative said that a plan is already in hand to deal with constraints.
Chairman NEPRA directed CEO CPPA-G to make peak hours timing part of new tariff guidelines, which are being finalized by the Federal Government.
Copyright Business Recorder, 2024