ISLAMABAD: Electricity consumers in Pakistan may face a costly winter as higher fuel prices and seasonal constraints on power generation are expected to increase the financial burden from December to February, according to Power Division sources.
Fuel price adjustments (FPAs) could rise two to threefold during the three-month period as international prices of liquefied natural gas (LNG), coal and other fuels push up electricity generation costs.
Consumers may face higher monthly adjustments, while power load management could also increase during the winter, the sources said.
Fuel Costs Rise
Global market prices of LNG and other fuels have climbed, adding to the cost of producing electricity, according to the sources.
Pakistan may need to rely more heavily on expensive fuel-based power generation during winter as hydropower output declines seasonally.
Limited availability of domestic gas is also expected to create difficulties in supplying fuel to power plants, potentially putting further pressure on electricity generation costs.
Load Management Risk
The Power Division has indicated that power load management could increase between December and February.
Sources said two hours of load management had been carried out in previous months to help limit the impact of higher electricity prices on consumers.
However, lower hydropower generation and constraints on domestic gas supplies could make it more difficult to meet electricity demand during the coming winter.
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Energy Supply Concerns
Pakistan relies on a combination of hydropower and fuel-based electricity generation. Seasonal reductions in hydropower output can increase dependence on imported fuels, exposing the power sector to changes in international energy prices.
The ongoing US-Iran conflict has added to concerns about global energy supplies. The source report said disruptions in the Persian Gulf and the closure of the Strait of Hormuz had affected fuel supply routes, increasing uncertainty for energy-importing countries such as Pakistan.
With winter approaching, higher fuel costs and seasonal supply constraints could place additional pressure on electricity consumers over the coming months.
