ISLAMABAD: The State of the Industry Report 2024, released by the National Electric Power Regulatory Authority (NEPRA), reveals critical inefficiencies in Pakistan’s power sector, exacerbating high electricity costs and impacting consumers nationwide.
Despite an installed generation capacity of 45,888 MW, underutilization remains a significant issue, with only 33.88% utilization recorded for FY 2023-24. Consumers bear the financial burden of 66.12% unutilized capacity, leading to elevated tariffs. NEPRA underscores the urgent need for operational reforms, particularly in addressing transmission and distribution losses, which climbed to 18.31%, far exceeding the allowed 11.77%.
The report also sheds light on the escalating circular debt, now at Rs. 2,393.37 billion, driven by inefficiencies in power distribution companies (DISCOs) and low recovery rates of 92.44%. Governance failures and high supplementary charges further inflate costs for consumers, pushing many toward off-grid solutions like solar installations.
NEPRA calls for strategic interventions, including integrating renewable energy, optimizing generation capacity, and reforming tariff structures. Strengthening governance, enhancing infrastructure, and fostering competitive energy markets are pivotal to ensuring affordable and reliable electricity for Pakistan’s future.
