ISLAMABAD: The 969-MW Neelum-Jhelum Hydropower Project has been offline since May due to a severe rock burst, draining millions from the national treasury and worsening Pakistan’s energy shortage, according to experts. The prolonged shutdown has exacerbated the shortfall in hydroelectric power, adding to the country’s energy challenges.
During a recent public hearing, NEPRA’s chairman expressed dissatisfaction with the Central Power Purchasing Agency (CPPA) for not providing repair cost estimates, noting that an inquiry committee is investigating the issue. NEPRA emphasized that decisions on repair funding will be based on the inquiry’s findings.
The hearing also covered a potential Rs0.71 per unit tariff reduction for consumers under a September 2024 fuel cost adjustment, which could yield overall savings of Rs8.5 billion if approved. The CPPA proposed the reduction due to lower generation costs from hydropower and nuclear energy sources, although lifeline and prepaid consumers, as well as EV charging stations, would be exempt.
Despite potential consumer relief, CPPA sought Rs7.5 billion in prior adjustments, while NEPRA questioned the efficiency of certain coal-fired plants, which reported reduced generation from some resources.
Story by Israr Khan
