NEPRA reports 25 per cent decline in electricity usage

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) disclosed in a recent session that there has been a 25 per cent decline in electricity usage.

The reduction in electricity usage was observed across Pakistan for the month of August.

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The sharp decline raised ‘alarms’ among the officials regarding its potential effects on the energy landscape,

During the session, NEPRA postponed its ruling on a matter related to the reimbursement of an extra charge of 57 paisa per unit that was applied on consumers in the monthly fuel adjustment for August.

The electric regulatory authority said it is currently evaluating the financial ramifications of this change in light of the falling consuption rates.

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NEPRA member Mathar Niaz Rana voiced his apprehensions about the drop in electricity demand. He pointed out that the influx of 13,000 megawatts of solar panel imports was encouraging a departure from reliance on the national grid.

He noted that the shift was contributing to a decline in overall electricity consumption. This, in turn, is increasingly influencing the rising costs of electricity.

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Another NEPRA employee added that the financial impact stemming from the decreased electricity usage was being shifted on to the consumers.

He remarked that the revenue shortfall caused by lower consumption was compelling the regulatory body to impose additional charges on the public to sustain income levels.

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The session highlighted the difficulties confronting Pakistan’s energy sector, struggling with chronic shortages and rising prices since the 2000s, and aseptically following then 2022-23 financial crisis.

The electric regulatory body is now grappling with changing consumer trends, the integration of renewable energy sources and the need for financial viability.