The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) for an electricity price hike in Pakistan. The agency is seeking an increase of Rs2.52 per unit under the July Fuel Price Adjustment (FPA). If approved, the proposed adjustment could increase electricity bills for consumers across the country.
According to the NEPRA notification, the CPPA filed the request based on the cost of electricity generation during July. The regulator has scheduled a hearing on the application for August 27. The final impact on consumers will depend on NEPRA’s decision following the hearing and review of the generation costs presented by the power purchasing agency.
The data submitted by CPPA shows that imported LNG remained one of the significant sources of electricity generation during July. Around 10.78% of electricity was generated through LNG, with the fuel cost reaching Rs47.37 per unit. Electricity generated from LNG was valued at approximately Rs77.19 billion during the month.
Fuel oil also contributed to the generation mix in July. According to the application, furnace oil accounted for 1.42% of total electricity generation, with its generation cost standing at Rs50.07 per unit. CPPA reported that electricity worth around Rs10.77 billion was generated using furnace oil.
Hydropower remained the largest contributor, accounting for 39.81% of electricity generation. Local coal contributed 10.91%, while imported coal accounted for 14.38%. Nuclear power represented 10.10% of the generation mix, with its fuel cost reported at only Rs3.02 per unit, highlighting the significant cost differences among generation sources.
The CPPA application also stated that diesel was used to generate electricity during July. Around 31 million units were produced through diesel-based generation, while the fuel cost reached Rs54.47 per unit. The relatively high costs of oil and diesel-based generation can contribute to upward pressure on electricity tariffs.
If NEPRA approves the proposed Rs2.52 per unit electricity price hike, consumers could face an additional financial burden of approximately Rs41 billion, including General Sales Tax (GST). The decision will be closely watched by households and businesses as electricity prices remain a major component of monthly expenses. NEPRA’s August 27 hearing will determine the next step in the July fuel price adjustment process.
