Nepra Flags Billions in Consumer Losses Due to Power Sector Inefficiencies

Nepra has raised a red flag over how mismanagement in Pakistan’s power sector is unfairly costing electricity consumers. The regulator says that several major power and transmission projects are running far below their potential, yet people are still paying as if they’re working at full capacity.

In a report to the government, Nepra's technical member Rafique A. Shaikh pointed out that the 4,000MW Lahore-Matiari Transmission Line, 969MW Neelum-Jhelum Hydropower Plant, and 747MW Guddu Power Plant are all underperforming. This has led to extra charges of over Rs1.5 per unit being passed on to consumers.

Stats show the issue clearly: thermal power plants were only working at 24% capacity in February 2025, and the HVDC system (which connects power from the south to the north) was used at just 23%. But despite this low usage, consumers are footing the full bill. This has forced the grid to depend on more expensive power plants in the north to keep things stable, pushing costs even higher.

The Guddu Power Plant is especially problematic — it’s been running inefficiently in an open-cycle mode, which led to Rs600 million in losses just in February. The total loss from Guddu in this financial year (FY25) has hit Rs5.7 billion.

The Neelum-Jhelum plant has also been out of action, pushing the grid to switch to more expensive fuel sources. That’s added another Rs0.8 billion in losses in February alone and Rs23.7 billion overall for the year.

Shaikh also said system limitations and contract obligations cost another Rs1.98 billion in February, bringing total avoidable losses to Rs11.69 billion in the first 8 months of FY25.

He’s calling for quick fixes — especially for repairing the Guddu and Neelum-Jhelum plants — and wants the government to urgently sort out the north-south transmission issue so cheaper electricity from the south can be used more effectively.