A significant decline of 11% in electricity sales has been reported in Pakistan, attributed to rising electricity prices, sparking concerns within the National Electric Power Regulatory Authority (NEPRA).
During a hearing on the first-quarter fuel adjustment charges for the current fiscal year, NEPRA officials reviewed a revised request from distribution companies (DISCOs). The companies had sought adjustments amounting to PKR 6.47 billion for the quarter. Surprising statistics presented during the hearing revealed the substantial impact of higher electricity costs on sales. Among the most affected regions, the Quetta Electric Supply Company (QESCO) recorded a staggering 19% drop in electricity sales. Other major decreases included MEPCO (15.76%), FESCO (14.48%), PESCO (14.47%), LESCO (8.41%), TESCO (7.41%), GEPCO (6.14%), SEPCO (5.62%), HESCO (4.54%), and IESCO (4.02%).
Karachi experienced a smaller impact, with K-Electric reporting only a 2.7% decline in electricity sales during September and October.
FESCO officials highlighted key factors contributing to the decline, including the closure of industries in their region and a significant shift from grid electricity to solar power, especially for agricultural tube wells. The growing adoption of solar energy has disrupted traditional electricity demand patterns, with its effects now becoming increasingly evident.
NEPRA authority members expressed deep concern over the reduced electricity sales, noting that if sales had met targets, consumers could have benefitted from up to PKR 60 billion in savings. Instead, the shortfall is placing additional financial burdens on customers. Rafiq Ahmed Sheikh, a member of NEPRA, emphasized the unsustainability of the current model, advocating for privatization as the only viable solution. “Distribution companies cannot operate effectively under the existing system,” he stated.
NEPRA also raised questions about disparities in solarization efforts across regions, particularly the relatively low impact of solar power adoption in Karachi. Sheikh criticized the justification provided by distribution companies and noted that forced load-shedding complaints have also emerged as a result of reduced electricity demand.
To address the situation, NEPRA has requested detailed reports from all DISCOs on load-shedding practices across their respective regions. The hearing concluded with discussions on the challenges facing the energy sector and the urgent need for systemic reforms.
