ISLAMABAD: The government on Thursday explained that furnace oil-based power plants operated at Rs33 per unit fuel cost in October, higher than Rs21 per unit from LNG-based plants, due to lower LNG allocation. Officials clarified that this decision was taken in “good faith” to ensure uninterrupted power supply, despite the availability of cheaper LNG-based options.
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At a public hearing conducted by the National Electric Power Regulatory Authority (Nepra), a Power Division team led by Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar confirmed that net-metered consumers helped lower overall fuel costs. Discos purchased 574 million units from net-metered systems, which carry zero fuel cost, thereby reducing the monthly Fuel Cost Adjustment (FCA).
The hearing revealed that more than 40 million units of electricity were generated using furnace oil to cover the shortfall caused by outages at the Sahiwal Coal Plant and two nuclear plants. While LNG-based plants remained underutilised, the resulting financial burden on consumers was estimated at around Rs520 million. Mr Akhtar maintained that the global energy system operates on trust and “good faith,” justifying the decision to rely on furnace oil.
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Officials also highlighted RLNG-based plants were operated according to available supply, with daily allocations of 600–615 million cubic feet per day. The government’s claims of surplus LNG and diversion of long-term contract cargos to the global spot market were acknowledged, but pipeline and field limitations constrained usage of cheaper fuel.
Responding to questions about industrial demand, Mr Akhtar said industrial electricity consumption between July and October rose 25 percent compared to the previous year, while noting that captive load diversion alone could not explain the increase. He estimated that net fuel cost reduction for October would amount to 17 paisa per unit, factoring in adjustments from September’s FCA.
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The session underscored the complex challenges of balancing fuel availability, cost efficiency, and system reliability amid constrained LNG supply.