Govt Decides to Start Loadshedding, Increase Electricity Rate Again

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Pakistan may face daily electricity load-shedding and higher power tariffs this summer as the government struggles to manage fuel shortages and rising generation costs.
Senior officials said the government is considering a hybrid strategy that includes limited load-shedding, compulsory electricity conservation, and fuel cost adjustments to maintain power supply during peak demand.
Authorities expect a sharp drop in fuel availability, particularly liquefied natural gas (LNG), which currently contributes more than 21 per cent of the country’s electricity generation. Officials said LNG supplies could fall to near zero from next month, even if regional tensions ease.
Imported and local coal supplies are also expected to remain limited. Together, LNG and coal account for nearly 30 per cent of the electricity supplied to the national grid.
To cover the shortfall, the government may rely on furnace oil-based power plants during peak hours. However, furnace oil is significantly more expensive than other fuels.
Officials said electricity generated from furnace oil costs around Rs35 per unit, compared with about Rs20 for LNG and Rs13.50 for imported coal.
Officials estimate that fuel cost adjustments could rise by Rs10 to Rs12 per unit due to the shutdown of four LNG-based power plants with a combined capacity of about 5,000 megawatts.
High-speed diesel, which could cost more than Rs80 per unit for power generation, will not be used because of its high price and essential demand in transport and agriculture.
During summer, electricity demand typically rises to 27,000–28,000 megawatts. Currently, peak demand remains below 14,000 megawatts, partly due to increased solar power usage.
Given the supply challenges, officials expect two to three hours of daily load-shedding on average, depending on fuel availability. The government also plans strict energy conservation measures and automatic fuel cost adjustments in electricity bills.
Meanwhile, gas companies have warned that only about 80 million cubic feet per day of gas may be available for power plants. Supplies to the CNG sector could be suspended to divert additional gas to electricity generation.
Officials also raised concerns over operational issues affecting coal supply to major power plants in Sahiwal and Jamshoro. Disputes between Pakistan Railways and plant operators have disrupted coal transport, threatening up to 1,800 megawatts of generation capacity.
If the fuel shortage continues, officials warned the situation could lead to additional load-shedding and higher electricity costs for consumers during the summer months.
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