The annual report said poor planning in power generation has created permanent financial pressure on the electricity system. Too much installed capacity, low plant use, and high fixed payments are pushing consumer tariffs higher.
The report clearly states, “Overall, the [power] sector’s high fixed costs, low utilisation, and inefficient dispatch of generation resources collectively resulted in higher electricity tariffs and financial stress on the power system.”
It further warned, “In summary, achieving an economically sustainable power sector requires thorough evaluation of the financial and economic consequences before adding new generation capacity. Simply expanding capacity without assessing its cost-effectiveness and expected utilisation can result in inefficiencies such as under-used assets and increased electricity costs for consumers.”
During FY2024-25, thermal plants operated at just 42.5 percent capacity, while renewable plants averaged 36.6 percent utilisation. This underuse, combined with excess capacity, sharply increased per-unit costs due to heavy capacity payments.
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Total power purchase cost reached Rs2,943,000,000,000. Around 61 percent was capacity purchase price, while 39 percent was energy purchase price. Average CPP stood at Rs14.3 per unit and EPP at Rs9 per unit.
The report said expensive imported fuels like RLNG, furnace oil and coal raised costs. In contrast, local sources such as nuclear, Thar coal and domestic gas were cheaper but underutilised.
Uch Power Plant and Uch-II Power Plant generated electricity at around Rs13.4 per unit, yet were not fully used. Similarly, Thar coal plants ran at only 72.9 percent capacity.
The transition of Lucky Electric Power Company Limited to local coal also depends on supply from Thar mines and the rail link project by Pakistan Railways.
Experts say the solution is simple but urgent. Use cheaper local plants more efficiently. Reduce dependence on imported fuel. Plan new capacity carefully.
In simple words, Pakistan is paying for power plants it does not fully use. This waste increases electricity bills. If reforms are delayed, tariffs may stay high. Smart planning can lower costs. But action must come fast.
