Electricity Prices Could Rise Soon Due to Decrease in Water Reservoirs

A hydropower shortfall is threatening to cause big problems in Pakistan this summer as key reservoirs run out of water due to low rain and deteriorating water levels. Water levels at major reservoirs are dangerously low. According to a WAPDA report issued on February 21, the Tarbela Dam stood at 1,431.56 feet, the Mangla Dam at 1,106 feet, and the Chashma Barrage at just 639.1 feet. A decline in hydropower production could force the government to depend on costly imported Liquefied Natural Gas (LNG) to meet electricity demand during summers. Data reveals that there has been a 4.4 percent decline in electricity generation for January 2025 compared to prior expectations. Meanwhile, the CPPA has sought a Rs. 2.0 per unit reduction in electricity bills over 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 until further review.