Electricity consumers across Pakistan, including Karachi, may face a fresh increase in power tariffs after the Central Power Purchasing Agency (CPPA) sought a fuel cost adjustment for May.
According to the request submitted to the National Electric Power Regulatory Authority (NEPRA), the agency has proposed an increase of Rs0.82 per unit under the monthly fuel cost adjustment mechanism.
NEPRA is scheduled to hear the petition on June 30, after which it will decide whether to approve the proposed increase.
Additional Burden of Rs12 Billion
If approved, the adjustment would place an additional burden of around Rs12 billion on electricity consumers nationwide.
The CPPA stated that 12.638 billion units of electricity were generated during May. The average fuel cost of generation stood at Rs9.25 per unit, compared to the reference fuel cost of Rs8.43 per unit, leading to the request for a higher tariff.
Hydropower Remained the Largest Source
According to the generation data, hydropower remained the biggest contributor to Pakistan’s electricity mix in May, accounting for 33.27 percent of total electricity production.
Meanwhile, 11.66 percent of electricity came from indigenous coal-fired plants.
Imported coal contributed 13.54 percent, while furnace oil-based generation accounted for only 0.16 percent of the total power output.
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Gas, LNG and Nuclear Energy Contributions
The CPPA report showed that 8.31 percent of electricity was generated from domestic natural gas, while 11.81 percent came from imported liquefied natural gas (LNG).
Nuclear power plants supplied 14.25 percent of the country’s electricity generation during the month.
NEPRA to Decide on June 30
The proposed increase comes after recent relief measures that had reduced electricity prices by Rs1.99 per unit. However, consumers may once again see higher bills if NEPRA approves the fuel cost adjustment request.
The regulator will conduct a public hearing on June 30 before issuing its final decision on the matter.
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