Electricity consumers in Pakistan may face a price hike, as the Central Power Purchasing Agency (CPPA) has submitted a request to increase electricity tariffs by Rs 2.56 per unit under the monthly fuel price adjustment for September.
According to the National Electric Power Regulatory Authority (NEPRA), a hearing on the request is scheduled for October 29. During this session, the cost of electricity generation and the basis for the fuel price adjustment will be reviewed.
The CPPA’s request states that the average fuel cost for electricity generation during September was Rs 10.02 per unit, whereas the estimated cost had been Rs 7.46 per unit. Consequently, the actual cost exceeded the estimate by Rs 2.56 per unit.
The request further details that the total expenditure on electricity generation in September amounted to Rs 127.87 billion. Costs incurred included Rs 7.95 billion for generation using local coal and Rs 37.14 billion for generation using imported coal.
During the same period, Rs 13.26 billion was spent on electricity generation using diesel, and Rs 11.81 billion on furnace oil. Additionally, costs of Rs 13.89 billion for generation from local gas and Rs 31.93 billion for generation using LNG were recorded.
According to CPPA data, electricity distribution companies sold a total of 12.76 billion units of electricity to consumers during the month of September. A decision on the request will be made following a NEPRA hearing.
If the increase is approved, it may be applied to consumers’ electricity bills in accordance with the relevant regulations. However, the final decision rests with the regulatory authority.
