Continued closure of NJ hydropower plant multiplies power woes

ISLAMABAD: The continued shutdown of Pakistan’s 969-MW Neelum-Jhelum hydropower plant is intensifying the financial burden on electricity consumers, as the country struggles to tap into cheaper energy. The plant has been offline since May 2024 due to a severe rock burst fault, depriving the national grid of much-needed low-cost electricity.

A government official informed the National Electric Power Regulatory Authority (NEPRA) during a public hearing had the Neelum-Jhelum plant been operational, the reimbursement rate for electricity consumers could have been higher, potentially rising from the current Rs1.03 per unit for December 2024. The ongoing closure is exacerbating the already significant energy challenges facing the country.

Experts revealed that the extended shutdown is draining hundreds of millions of rupees from the national exchequer while failing to provide consumers with affordable electricity typically supplied by the facility. The absence of Neelum-Jhelum Hydropower Plant has worsened the country’s hydroelectric power shortfall, further burdening an already strained electricity supply.

The hearing addressed the petition filed by the Central Power Purchasing Agency (CPPA), representing state-owned distribution companies (Discos), which sought approval for a reduction of Rs1.03 per unit in electricity prices under the Fuel Charges Adjustment (FCA) for December. If approved, this adjustment could offer some financial relief to consumers in February 2024. However, the reduction would not apply to lifeline consumers, electric vehicle charging stations, or K-Electric customers.

Another issue raised during the hearing was the non-operation of Guddu Power Plant (747 MW), which is also contributing to rising electricity costs. NEPRA questioned the CPPA on the reasons behind the plant’s shutdown, but the agency failed to provide a clear explanation.