Pakistan’s electricity consumers are bearing billions of rupees in additional costs because the National Grid Company (NGC), formerly known as NTDC, has failed to transfer cheaper electricity from Sindh and southern Pakistan to major consumption centers in the north. Transmission hurdles make the power system to rely on more expensive regasified liquefied natural gas (RLNG) and imported coal generation, while cheaper electricity from Thar coal, nuclear and wind sources remains underutilized.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticized these inefficiencies and questioned the proposed CY2027 Power Purchase Price Reference. In its response to the Central Power Purchasing Agency’s (CPPA) petition, the business body warned that consumers should not be forced to absorb the financial consequences of a transmission network that cannot deliver cheaper electricity despite available generation capacity.
The FPCCI also raised concerns about the proposed increase in fixed charges, particularly capacity payments, arguing that the additional revenue could be used to sustain "disproportionately high salaries, perks and administrative expenses of managing directors, CEOs and other senior executives across power sector entities." Furthermore, the industry body cautioned that a proposed reduction in variable electricity charges could create a "misleading impression of lower tariffs" while shifting more of the financial burden onto consumers through higher fixed charges.
At a National Electric Power Regulatory Authority (NEPRA) hearing on the June 2026 Fuel Cost Adjustment, transmission constraints were reported to have imposed an annual financial burden exceeding Rs. 400 billion. Based on projected electricity generation of 130,081 gigawatt hours, the additional burden translates into an estimated cost of approximately Rs. 3.07 per unit, adding significantly to expenses for consumers and businesses.
In June 2026, the fuel cost of RLNG based electricity stood at Rs. 35.5087 per unit, compared with Rs. 11.4629 for Thar coal and Rs. 2.8501 for nuclear power. The difference in generation costs highlights the potential savings from better transmission infrastructure, as replacing RLNG generation with Thar coal could reduce fuel costs by approximately Rs. 24 per unit.
