ISLAMABAD: The Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (NEPRA) to increase electricity prices by Rs2.56 per unit under the September fuel price adjustment mechanism.
According to NEPRA, a hearing on the CPPA’s request is scheduled for October 29. The proposed adjustment could affect electricity bills for consumers served by distribution companies (DISCOs), subject to the regulator’s decision.
The CPPA’s application states that the average fuel cost of electricity generation was initially estimated at Rs7.46 per unit for September. However, the actual average fuel cost reportedly increased to Rs10.02 per unit during the month, prompting the agency to seek an adjustment.
Regarding coal-based electricity generation, the application states that power produced using locally sourced coal cost Rs7.95 billion in September. Electricity generation from imported coal accounted for a significantly higher expenditure of Rs37.14 billion, according to the submitted figures.
The agency also reported spending Rs13.26 billion on diesel used for power generation during September. Meanwhile, fuel oil consumption for electricity production accounted for another Rs11.81 billion, highlighting the costs associated with different fuels used in the country’s power generation system.
According to the CPPA’s application, electricity generation using local gas cost Rs13.89 billion, while expenditure on LNG-based power generation reached Rs31.93 billion. The total fuel cost of electricity generation for September stood at Rs127.87 billion.
The application further states that distribution companies sold 12.76 billion units of electricity during September. NEPRA will review the proposed Rs2.56 per unit increase at the scheduled hearing before making a decision. The final adjustment will depend on the regulator’s determination.
