ISLAMABAD: In a striking contradiction, the National Electric Power Regulatory Authority (Nepra) has reiterated that revenue-based loadshedding is illegal, yet the Power Division has made it clear the practice will continue to contain the country’s mounting circular debt.
During a public hearing on a marginal fuel cost adjustment of Rs0.27 per unit, officials confirmed that discontinuing revenue-based loadshedding could add over Rs400 billion to the circular debt, which has already surged to approximately Rs1.8 trillion from Rs1.6 trillion within nine months.
Amina Ahmed openly termed the practice unlawful, raising concerns over regulatory enforcement as utilities admitted to continuing the approach. Officials also revealed that the government is considering removing the petroleum levy on furnace oil—subject to IMF approval—to ease tariff pressures amid LNG shortages.
Meanwhile, authorities reported improved gas supply to the power sector, expected to rise to 250 MMCFD with incoming LNG cargo, offering some operational relief.
