ISLAMABAD: Electricity consumers across the country, including those in Karachi, may face a further increase in power bills as the National Electric Power Regulatory Authority (Nepra) is set to consider a request seeking a Rs0.82 per unit hike under the monthly fuel cost adjustment mechanism.
CPPA Files Petition for Fuel Cost Adjustment
The proposed increase has been sought by the Central Power Purchasing Agency (CPPA), which has filed a petition with the regulator for adjustment of fuel charges for electricity generated during May. Nepra is scheduled to hold a public hearing on the matter on June 30.
According to the petition, approval of the request would impose an additional burden of around Rs12 billion on electricity consumers nationwide. The CPPA informed the regulator that a total of 12.638 billion units of electricity were generated during May.
Fuel Cost Details
The average fuel cost of power generation remained Rs9.25 per unit, higher than the reference fuel cost of Rs8.43 per unit, resulting in the proposed adjustment. Documents submitted to NEPRA show that hydropower remained the largest source of electricity generation during the month, accounting for 33.27% of the total energy mix.
Energy Mix Breakdown
Electricity generated from local coal contributed 11.66%, while imported coal accounted for 13.54% of total production. Furnace oil, once a major source of thermal power generation, represented only 0.16% of the overall generation mix during the month.
The power generation data further revealed that 8.31% of electricity was produced using local natural gas, while imported liquefied natural gas (LNG) contributed 11.81%. Nuclear energy also remained a significant component of the national power mix, accounting for 14.25% of total electricity generation in May, according to the petition.
Monthly fuel cost adjustments are routinely determined by NEPRA to reflect fluctuations in fuel prices and changes in the electricity generation mix.
