ISLAMABAD, PAKISTAN — WEB DESK: Electricity consumers in Pakistan could face higher bills after the Central Power Purchasing Agency (CPPA) sought an increase of Rs2.52 per unit under the fuel price adjustment for electricity generated in July.
The application has been submitted to the National Electric Power Regulatory Authority (NEPRA), which is scheduled to hold a hearing on the request on August 27.
If the proposed adjustment is approved, consumers could face an estimated additional financial burden of about Rs41 billion, including general sales tax (GST).
The requested increase has not yet been approved and remains subject to NEPRA’s regulatory review and final decision.
According to figures submitted with the application, imported re-gasified liquefied natural gas (RLNG) accounted for 10.78% of electricity generation during July. Electricity produced from imported LNG cost approximately Rs47.37 per unit, with total expenditure on this source reaching around Rs77.19 billion.
Furnace oil accounted for about 1.42% of the generation mix and cost approximately Rs50.07 per unit, resulting in expenditure of around Rs10.77 billion.
Diesel was among the most expensive sources used during the month. Around 31 million units were generated from diesel at a cost of approximately Rs54.47 per unit.
In contrast, nuclear power accounted for 10.10% of total generation, with its fuel cost reported at approximately Rs3.02 per unit.
Hydropower remained the largest source in the reported July generation mix, accounting for 39.81% of electricity production. Local coal contributed 10.91%, while imported coal represented 14.38%.
Fuel charge adjustments are used to reconcile differences between previously assumed fuel costs and the actual costs incurred in generating electricity. NEPRA’s regulatory framework provides for monthly adjustments reflecting variations in fuel prices and the generation mix, with resulting increases or decreases passed through to eligible consumers.
NEPRA will examine CPPA’s generation and fuel-cost data during the August 27 hearing before deciding whether the requested Rs2.52-per-unit adjustment should be approved.
The outcome will determine the extent of any additional charge passed on to electricity consumers.
