Electricity sales drop by 11 percent in Pakistan amid price hike

ISLAMABAD: A significant drop of 11 percent in electricity sales has been reported in Pakistan, due to the increase in electricity prices, which has raised concerns within the National Electric Power Regulatory Authority (Nepra).

During the hearing on fuel adjustment charges for the first quarter of the current fiscal year, Nepra officials reviewed the revised application by distribution companies (DISCOs). The companies had sought an adjustment of PKR 6.47 billion for the quarter. The shocking figures presented during the hearing revealed that the high electricity prices have had a significant impact on sales. Among the worst-affected areas, Quetta Electric Supply Company (KESCO) recorded a staggering 19 percent decline in electricity sales. Other major declines include MEPCO (15.76%), FESCO (14.48%), PESCO (14.47%), LESCO (8.41%), TESCO (7.41%), GEPCO (6.14%), SEPCO (5.62%), HESCO (4.54%), and IESCO (4.02%).

Karachi saw a smaller impact, with K-Electric reporting a decline of just 2.7% in electricity sales during September and October.

FESCO officials highlighted key factors for the decline, including the closure of industries in their area and a significant shift from grid power to solar power, especially for agricultural tubewells. The growing adoption of solar power has disrupted the traditional pattern of electricity demand, the effects of which are now becoming increasingly visible.

Members of the NEPRA authority expressed deep concern over the decline in electricity sales, saying that if sales had met the targets, consumers could have benefited from savings of up to Rs60 billion. Instead, the shortage is putting additional financial burden on consumers.

NEPRA member Rafiq Ahmed Sheikh stressed the unsustainability of the current model and termed privatization as the only viable solution. He said that distribution companies cannot function effectively under the current system.

NEPRA also raised questions about the disparity in solarization efforts across regions, especially the relatively low impact of solar energy adoption in Karachi. Sheikh criticized the justification provided by distribution companies and said that there have also been complaints of forced load shedding as a result of the decline in power demand.

To address the situation, NEPRA has sought detailed reports from all the DISCOs on load shedding practices in their respective areas. The hearing concluded with a discussion on the challenges facing the energy sector and the urgent need for systemic reforms.