NEPRA member flags Rs117bn losses from Guddu, Neelum-Jhelum

August 08, 2025 (MLN): In a strongly worded technical note, a member of the National Electric Power Regulatory Authority (NEPRA) has pointed to persistent governance failures in Pakistan’s power sector.

These include prolonged outages, stalled infrastructure projects, and mounting financial losses, all feeding into higher monthly Fuel Cost Adjustments (FCA) for consumers.

The note highlighted the continued outage of Guddu Unit-16 and the prolonged non-operation of the 747 MW Neelum-Jhelum project as major contributors to sectoral inefficiency.

The Guddu unit alone caused an additional cost of Rs827 million in June 2025, with cumulative losses hitting Rs116.827 billion since July 2022.

Meanwhile, Neelum-Jhelum remains offline despite Rs75.5bn already recovered from consumers, placing further financial burden on the system.

Delays in key infrastructure projects like the Lahore North Grid Station and SCADA-III, coupled with underutilization of the HVDC line (operating at just 43%) and persistent South-North transmission constraints, have led to avoidable losses of Rs14.06bn for FY2024–25.

The note also underscored the alarming rise in Part Load Adjustment Charges (PLAC), which reached Rs4.1bn in June and Rs41.2bn in the fiscal year, further stressing the need for better demand forecasting and system reliability.

“These governance lapses are not isolated,” the NEPRA member stated. “They are systemic, repetitive, and symptomatic of chronic mismanagement.”

The note stressed that accountability is the missing link, without which reforms alone will not bring lasting improvements.

The member called for holding institutions and individuals accountable for inefficiencies, delays, and poor decisions, urging that only through real accountability can sectoral efficiency be restored and a sustainable path forward be achieved.

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