Rising Electricity Prices Expected Due to Declining Water Reservoirs

Rising Electricity Prices Expected Due to Declining Water Reservoirs

A hydropower shortfall could lead to significant challenges in Pakistan this summer as key reservoirs face critically low water levels due to insufficient rainfall and deteriorating conditions.

According to a WAPDA report issued on February 21, water levels at major reservoirs are alarmingly low. Tarbela Dam stands at 1,431.56 feet, Mangla Dam at 1,106 feet, and Chashma Barrage at just 639.1 feet.

The reduction in hydropower production may force the government to rely on expensive imported Liquefied Natural Gas (LNG) to meet electricity demand during the summer months.

Data reveals a 4.4 percent decline in electricity generation for January 2025 compared to prior expectations.

Meanwhile, the CPPA has requested a Rs. 2.0 per unit reduction in electricity bills due to lower fuel costs in January. If approved, consumers could receive collective relief of Rs. 15.65 billion. The Power Division has urged the National Electric Power Regulatory Authority to extend the FCA reduction to domestic users consuming up to 300 units and the agricultural sector. Nepra has reserved its decision pending further review.

 

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