DATA extracted from the annual reports of the National Electric Power Regulatory Authority (Nepra) and the Central Power Purchasing Agency (CPPA) illustrates that in financial year 2012, surplus capacity existed in Pakistan’s power system, excluding K-Electric (KE). As a result, thermal power plants operated only 49 per cent of the time. The addition of new thermal plants in subsequent years further increased the surplus capacity, reducing their operating time to 26pc in 2024.

This unnecessary expansion of thermal plants significantly raised the capacity purchase price (CPP) for thermal gene-ration, which is paid in dollar terms, from Rs125,670 million in 2012 to Rs1,053,400 million in 2024; an increase of more than eight times.

As a result, the higher CPP made electricity unaffordable, weakened the rupee, hurt the economy, escalated the circular debt, and reduced energy security.

Muhammad Akram Khan
Lahore

Published in Dawn, February 19th, 2025