Electricity prices likely to go up again

The electricity prices in Pakistan are likely to see another hike as the Central Power Purchasing Agency (CPPA) has filed an application at the National Electric Power Regulatory Authority (NEPRA) for an increase in power tariff, ARY News reported.

The application came days after the NEPRA notified a hike of Rs4.92 per unit in electricity prices.

This time, the CPPA has asked for an increase of Rs2.94 per unit in fuel price adjustment charges for March 2024 bills.

The NEPRA will set a date to conduct a hearing on the application after which a decision will be made regarding the hike.

The NEPRA on April 8, notified an increase of Rs4.92 per unit under monthly fuel adjustment. The power regulatory body hiked the price for February which would be collected from the consumers from the bills of April 2024.

However, the hike would not be applicable on consumers of K-Electric and lifeline.

On March 28, the NEPRA approved an increase of Rs2.75 in the electricity tariff applicable from April across the country under fuel price adjustment (FCA).

The power regulatory body forwarded its decision to the federal government for notifying the hike in the power tariff.

A NEPRA report had revealed that Pakistan’s power sector caused a Rs403 billion loss in FY2022-23.

The progress report of the power distribution companies including K-Electric was released by the NEPRA on February 27, indicating nine distribution companies including K-Electric failed to achieve 100% recovery.

The line losses and low recoveries caused a loss of Rs403 bln to the national kitty, the report said. The report highlighted that the companies did not buy the electricity as per the assigned quota.

The companies were carrying out loadshedding ‘deliberately’ as they were not buying electricity as per their quotas, the report said.

Citing no investment by the electricity distribution companies to improve its system, the NEPRA report suggested changes at the administrative levels in the companies.