NEPRA releases its State of Industry Report 2023-24

National Electric Power Regulatory Authority (NEPRA) has released its State of the Industry Report (SIR) 2023-24 which highlights inefficiencies in Pakistan’s power sector.

The report highlights issues including underutilization of generation capacity, transmission bottlenecks, and governance lapses in the distribution sector. With installed generation capacity at 45,888 MW by June 2024, only 33.88% was utilized, burdening consumers with higher costs for idle resources. Generation costs comprised 83% of the end-user tariff, further exacerbated by inefficient transmission and distribution (T&D) systems.

NEPRA criticized the National Transmission and Despatch Company Limited (NTDC) for delays in critical projects, such as the Lahore North Transmission Line and underutilization of the HVDC line, which operated at just 20% capacity. Distribution Companies (DISCOs) reported excessive T&D losses and insufficient recovery ratios, adding PKR 591 billion to the circular debt, which surged to PKR 2,393.37 billion by June 2024.

The report highlighted Rs 60.386 billion losses due to transmission constraints and Rs7.9 billion from Guddu 747 operations in open-cycle mode while Rs 86 billion losses attributed to the absence of Guddu 747’s steam turbine. 

Additional Rs95.171 billion from Non-Project Missed Volume (NPMV) payments and Part Load Adjustment Charges (PLAC). NEPRA proposed privatization or the introduction of private management for public sector entities as potential solutions to address inefficiencies. It also emphasized progress in the Competitive Trading Bilateral Contract Market (CTBCM) initiative to foster competition and dismantle DISCO monopolies.

The report praised efforts by stakeholders such as the Private Power and Infrastructure Board (PPIB) and National Energy Efficiency and Conservation Authority (NEECA) in promoting renewable energy. Additionally, NEPRA introduced interactive infographics and performance metrics via QR codes on its website to improve transparency and accessibility.