Power Tariff Hike Likely to Burden Consumers Across Pakistan by Rs32.66 Billion
ISLAMABAD: Preparations are underway to increase electricity prices for consumers across Pakistan, including Karachi, with a proposed hike of Rs2.56 per unit under the monthly fuel price adjustment mechanism.
The proposed increase could impose an additional financial burden of Rs32.66 billion on electricity consumers nationwide.
The National Electric Power Regulatory Authority (NEPRA) held a hearing on an application filed by the Central Power Purchasing Agency (CPPA) seeking an adjustment in electricity tariffs for September. Following the hearing, NEPRA reserved its decision.
During the hearing, CPPA officials informed the regulator that international fuel prices, including those of liquefied natural gas (LNG), were currently at extremely high levels.
They stated that the average fuel cost of electricity generation stood at Rs10.02 per unit in September, compared to the estimated reference cost of Rs7.46 per unit.
According to the CPPA briefing, the total cost of electricity generation during September reached Rs127.87 billion.
The cost of electricity generation from different sources included Rs7.95 billion for local coal, Rs37.14 billion for imported coal, Rs13.26 billion for diesel and Rs11.81 billion for furnace oil.
Similarly, electricity generation through local gas cost Rs13.89 billion, while LNG-based power generation incurred expenses of Rs31.93 billion.
CPPA officials further informed the hearing that distribution companies (DISCOs) collectively sold 12.76 billion units of electricity during September.
NEPRA’s final decision will determine whether the proposed Rs2.56 per-unit increase is passed on to electricity consumers.
