Cheap Electricity Impossible in Pakistan Due to Grid Failures

Pakistan's electricity consumers are bearing billions of rupees in extra costs as the National Grid Firm (NGC), formerly known as NTDC, has failed to transfer cheaper electricity from Sindh and southern Pakistan to major consumption centers in the north.

Key points

• Based on projected electricity generation of 130, 081 gigawatt hours, the extra burden translates into an estimated cost of approximately Rs.
• The matter has drawn criticism from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
• Replacing RLNG generation with Thar coal could therefore reduce fuel costs by approximately Rs.
• The resulting inefficiencies are adding to the country's already high electricity tariffs.
• The difference in generation costs highlights the potential savings from better transmission infrastructure.

While cheaper electricity from Thar coal, nuclear and wind sources remains underutilized, transmission hurdles create the power system to rely on more expensive regasified liquefied natural gas (RLNG) and imported coal generation.

For context, the resulting inefficiencies are adding to the country's already high electricity tariffs. Govt Seeks Diesel for Punjab RLNG Power Plant. Transmission Constraints Cost Consumers Rs. 400 Billion.

For context, the matter has drawn criticism from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). It has questioned the proposed CY2027 Power Purchase Rate Reference and demanded accountability for transmission-related inefficiencies.

In its response to the Central Power Purchasing Agency's (CPPA) petition, the business body cautioned that consumers should not be forced to absorb the financial consequences of a transmission network that cannot deliver cheaper electricity despite available generation capacity.

Notably, the FPCCI additionally triggered concern concerning the proposed growth in fixed charges, particularly capacity payments, arguing that the further revenue could be applied to sustain disproportionately high salaries, perks and administrative expenses of managing directors, CEOs and other senior executives throughout power sector entities. Higher Fixed Charges Could Offset Relief.

Notably, the industry body further 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 documented to have imposed an annual financial burden exceeding Rs. 400 billion.

Based on projected electricity generation of 130, 081 gigawatt hours, the extra burden translates into an estimated cost of approximately Rs. 3.07 per unit, adding significantly to expenses for consumers and businesses. Petroleum Levies Adding Rs. 10 to Every Unit of Electricity. Cheaper Thar Coal Could Replace Expensive RLNG.

Notably, the difference in generation costs highlights the potential savings from better transmission infrastructure. 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.

Replacing RLNG generation with Thar coal could therefore reduce fuel costs by approximately Rs. 24 per unit, highlighting the financial impact of transmission constraints that prevent cheaper electricity from reaching major consumption centers. Stay Connected with ProPakistani.

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Taken together, the developments around cheap Electricity Impossible in Pakistan Due to Grid Failures point to a situation that is still moving, and the coming days should bring more clarity.