Pakistan’s electricity consumers are paying an additional Rs. 400 billion because the national power transmission network cannot deliver cheaper electricity from southern parts of the country to major consumption centers in the north.

The transmission bottlenecks are forcing the power system to depend more heavily on expensive regasified liquefied natural gas (RLNG) and imported coal, while lower-cost electricity from Thar coal, nuclear and wind sources remains underused.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised the issue in its response to the Central Power Purchasing Agency’s (CPPA) proposed Power Purchase Price Reference for calendar year 2027, calling for accountability over transmission-related costs.

The business body has warned that consumers should not bear the financial burden of infrastructure failures. At a National Electric Power Regulatory Authority (NEPRA) hearing on the June 2026 Fuel Cost Adjustment, transmission constraints were estimated to be costing consumers more than Rs. 400 billion annually.

Based on projected generation of 130,081 gigawatt hours, this amounts to approximately Rs. 3.07 per unit. The FPCCI has also opposed higher fixed charges, particularly capacity payments, warning that reductions in variable charges could be offset by increases in fixed costs.

The difference in generation costs highlights the potential savings. In June 2026, RLNG-based electricity had a fuel cost of Rs. 35.5087 per unit, compared with Rs. 11.4629 for Thar coal and Rs. 2.8501 for nuclear power.

Using Thar coal instead of RLNG could reduce fuel costs by around Rs. 24 per unit, provided transmission constraints are addressed.