ISLAMABAD: Electricity consumers in Pakistan may face higher power bills as the Central Power Purchasing Agency (CPPA) has sought an increase of Rs2.56 per unit under the monthly fuel price adjustment for September.
The National Electric Power Regulatory Authority (NEPRA) will hear the request on October 29. The regulator will examine the fuel costs reported for the month before deciding whether to approve the proposed adjustment.
According to the CPPA’s application, the average fuel cost of electricity generation stood at Rs10.02 per unit in September, compared with the reference cost of Rs7.46 per unit. The difference forms the basis of the requested increase.
The agency reported that the total cost of electricity generation reached Rs127.87 billion during the month. Generation using locally mined coal accounted for Rs7.95 billion, while imported coal cost Rs37.14 billion.
The cost of producing electricity through diesel stood at Rs13.26 billion, while furnace oil accounted for Rs11.81 billion. Power generation using local gas cost Rs13.89 billion, and liquefied natural gas (LNG) accounted for Rs31.93 billion.
The CPPA also reported that distribution companies supplied a total of 12.76 billion units of electricity to consumers in September.
Fuel price adjustments are used to account for differences between actual fuel costs and the reference costs considered in electricity tariffs. Such adjustments can affect consumer bills, depending on the regulator’s decision and the applicable tariff rules.
The proposed increase has not yet been approved. Its impact on electricity bills will depend on NEPRA’s final determination and the terms under which any adjustment is implemented.
