Electricity tariff likely to be increased in Pakistan

ISLAMABAD: In a move likely to add strain to already beleaguered power consumers, the Central Power Purchasing Agency (CPPA) has applied to increase the power tariff by Rs5.32 per unit due to fuel adjustments for December 2023, ARY News reported on Monday.  

The application has been submitted to the National Electric Power Regulatory Authority (NEPRA), triggering concerns of an additional financial burden on consumers already grappling with rising utility costs.

Central Power Purchasing Agency (CPPA), on the request of DISCOs, was seeking NEPRA’s approval for increase in electricity tariff under FCA of November 2023. The power regulatory authority is set to conduct a hearing on this matter on Jan 31.

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The CPPA said in September 12.92 billion electric units were produced at the cost of Rs7.61/ unit, while the reference cost for September was fixed at Rs7.7 per unit.

In its application, the CPPA reported that 7.41 billion electric units were generated in December.

Hydropower generation contributed 24.03% in the total generation. Meanwhile, 16.95 per cent of electricity was general from local coal and 4.97 per cent from imported coal.

10.69% of total power was produced from local gas while 16.41 per cent of power generation in Pakistan was made through imported RLNG.

Earlier on Jan 4, NEPRA jacked up the electricity tariff by Rs 4.12 per unit for its consumers under the account fuel adjustment charges for the month of November 2023.

Meanwhile, the consumers have to pay additional charges in the month of January 2024, however, the increase wasn’t applied to Lifeline and KE consumers.