ISLAMABAD – The National Electric Power Regulatory Authority (NEPRA) has once again declared revenue-based load shedding unlawful, even as the Power Planning and Monitoring Company (PPMC) warned that ending the practice could significantly increase circular debt by more than Rs 500 billion.
The matter—reportedly supported by the International Monetary Fund (IMF) and other global financial institutions—came under discussion during a public hearing on the Fuel Charges Adjustment (FCA) for March 2026, presided over by NEPRA Chairman Waseem Mukhtar along with Members Amina Ahmed and Maqsood Anwar Khan.
Revenue-based load shedding links electricity outages to bill recovery rates, in some cases resulting in prolonged power cuts of up to 18 hours in low-recovery areas.
However, NEPRA and the Ministry of Law maintain that the practice is illegal and violates fundamental rights.
Despite this, the Power Division has cautioned that discontinuing the mechanism could worsen the financial strain on the power sector, projecting an additional burden of over Rs 500 billion on circular debt. The stock of circular debt stood at Rs 1.798 trillion by March 31, 2026, and is expected to decline to Rs 1.224 trillion by June 30, 2026, assuming no further increase in the flow.
During the hearing, the Central Power Purchasing Agency–Guaranteed (CPPA-G) proposed a positive adjustment of Rs 0.27 per unit for March 2026, to be recovered in May. This adjustment will replace the previously approved Rs 1.42 per unit positive FCA for February, leading to a net relief of Rs 1.15 per unit for consumers.
CPPA-G Chief Executive Rihan Akhtar informed the regulator that electricity demand rose by 6.38 percent compared to reference levels and 6.31 percent year-on-year. He added that while fuel costs increased by Rs 0.27 per unit, a reduction of Rs 1.22 per unit in capacity payments resulted in an overall decline of Rs 0.95 per unit in the system pool price.
Officials further noted that gas supply for power generation had increased to around 150 MMCFD from 80 MMCFD, while an LNG shipment is expected to arrive in Karachi shortly. The meeting also highlighted a sharp rise in electricity usage by captive consumers.
Representatives from industrial sectors in Lahore and Karachi praised efforts by the Power Division and related bodies for maintaining supply stability and managing tariffs.
CPPA-G also stated that without electricity supplied to K-Electric from the national grid, consumers would have faced an increase of Rs 1.06 per unit in FCA and Rs 2.72 per unit in capacity charges, meaning a combined benefit of Rs 3.81 per unit for March 2026.
Power generation peaked at 18,551 MW during March, while the lowest level of 5,950 MW was recorded during Eid-ul-Fitr holidays, when industrial net metering exports dropped and pressure on the system increased.
