Electricity prices likely to drop further in Pakistan

ISLAMABAD: In a major relief for power consumers in Pakistan, the electricity prices are likely to decrease by Rs2 per unit, ARY News reported.

According to a proposal submitted by power distribution companies to the National Electric Power Regulatory Authority (NEPRA), the reduction is part of the quarterly adjustment for January and is expected to provide relief to consumers across the country.

The Central Power Purchasing Agency (CPPA) has requested the price reduction under the monthly fuel adjustment mechanism.

According to the CPPA, the cost of electricity generation in January was Rs10.78 per unit, while the reference fuel cost was Rs13.01 per unit.

In January, the power generation mix consisted of 10.63% hydel, 15.56% coal, 8.53% imported coal, 1.35% furnace oil, 13.11% local gas, 18.92% imported LNG, and 26.61% nuclear fuel ¹. The NEPRA will hear the CPPA’s request today.

Earlier this month, prime Minister (PM) Shehbaz Sharif said that electricity tariffs would further be reduced for domestic consumers and industries through reforms in the electricity sector.

He expressed satisfaction with the current changes in the electricity sector, stating that they are producing great results, while chairing a review meeting of the sector in Islamabad on Friday.

PM Shehbaz said that he has pledged to guarantee the supply of affordable and sustainable power. He said revising agreements with IPPs is saving the national treasury and reducing electricity prices for consumers.

The Prime Minister made reference to the campaign against power theft and pledged to speed it up even further in order to completely eradicate the losses incurred by all distribution firms in this area.