Electricity consumers in Pakistan may face an additional financial burden as the Central Power Purchasing Agency (CPPA) has requested a Rs2.56 per unit increase in electricity prices under the monthly fuel price adjustment for September.
The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which will hold a public hearing on October 29 to review the proposed increase. The adjustment is intended to recover additional fuel costs incurred during electricity generation in September.
The proposed increase has not yet been approved. NEPRA will examine the application and hear the relevant stakeholders before making a final decision.
Why Has CPPA Requested an Electricity Price Increase?
According to the application, the average fuel cost of electricity generation was estimated at Rs7.46 per unit for September. However, the actual fuel cost rose to Rs10.02 per unit.
The difference between the estimated and actual fuel costs has led the CPPA to seek an additional recovery of Rs2.56 per unit from consumers.
Fuel price adjustments are used to account for differences between the projected cost of electricity generation and the actual expenses incurred during a particular month. Depending on NEPRA’s decision, these adjustments can result in an increase or decrease in electricity bills.
Fuel Costs Reach Rs127.87 Billion
The CPPA reported that the total cost of fuel used for electricity generation reached Rs127.87 billion during September.
According to the application, electricity generation using imported coal accounted for Rs37.14 billion, while local coal-based generation cost Rs7.95 billion.
The agency also reported spending Rs13.26 billion on diesel and Rs11.81 billion on furnace oil for power generation during the month.
Meanwhile, electricity generated using local gas cost Rs13.89 billion. The cost of electricity produced through liquefied natural gas (LNG) stood at Rs31.93 billion.
These figures reflect the fuel expenses reported by the CPPA as part of its request for additional cost recovery. NEPRA will review the submitted details as part of its assessment.
Electricity Consumption During September
The CPPA stated that distribution companies, commonly known as DISCOs, sold 12.76 billion units of electricity during September.
The agency has used the reported fuel costs and electricity sales figures to support its request for the monthly adjustment.
The proposed Rs2.56 per unit increase would allow the recovery of additional fuel costs if approved by the regulator. The final impact on individual consumers will depend on NEPRA’s decision and the applicable billing arrangements.
When Will NEPRA Announce Its Decision?
NEPRA is scheduled to conduct the public hearing on October 29. During the process, the regulator will consider the CPPA’s application and hear relevant stakeholders before deciding whether to approve the requested adjustment.
Until NEPRA issues its decision, the proposed increase remains a request rather than a confirmed change in electricity prices.
Consumers will need to wait for the regulator’s final announcement to know whether the September fuel price adjustment will lead to an additional charge on their electricity bills.
Also read: NEPRA Announces Electricity Relief of Rs. 56 Billion
