The Central Power Purchasing Agency (CPPA) has requested an electricity tariff adjustment to recover higher fuel costs for September. The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on October 29 to review the request.
According to the application, the proposed adjustment aims to recover additional fuel expenses incurred during the month. The decision could affect electricity bills for consumers across Pakistan.
The CPPA reported that the average fuel cost of electricity was estimated at Rs7.46 per unit for September. However, the actual fuel cost increased to Rs10.02 per unit.
This difference prompted the agency to seek additional cost recovery through a tariff adjustment. NEPRA will examine the application before deciding whether to approve the request.
CPPA Reports Higher Electricity Generation Costs
The CPPA provided details of fuel expenses for electricity generation during September. The figures show spending across several energy sources, including coal, diesel, furnace oil, natural gas, and liquefied natural gas.
Electricity generation using local coal cost Rs7.95 billion during the month. Meanwhile, power produced through imported coal accounted for Rs37.14 billion.
The agency also reported spending Rs13.26 billion on diesel for electricity generation. Another Rs11.81 billion was used for furnace oil.
These expenses contributed to the overall cost of producing electricity during September. The figures reflect the spending required to operate power plants using different fuel sources.
Gas and LNG Add to Fuel Expenses
The CPPA reported that electricity generation using local gas cost Rs13.89 billion in September. Meanwhile, Rs31.93 billion was spent on electricity produced through liquefied natural gas (LNG).
According to the application, the total fuel cost of electricity generation reached Rs127.87 billion during the month.
The reported expenses highlight the financial impact of fuel costs on the power sector. The proposed adjustment seeks to recover the difference between the estimated and actual fuel costs.
However, the final amount, if any, will depend on NEPRA’s review of the application and supporting data.
Electricity Sales Reach 12.76 Billion Units
The CPPA also stated that distribution companies, commonly known as DISCOs, sold 12.76 billion units of electricity during September.
This figure forms part of the information submitted for the proposed fuel cost adjustment. NEPRA will review the relevant details during its assessment.
The authority is expected to consider the fuel expenses, electricity generation figures, and other relevant information before making a decision.
NEPRA to Review CPPA Request on October 29
NEPRA has scheduled a public hearing for October 29 to examine the CPPA’s application. Relevant stakeholders will have an opportunity to present their views during the process.
The hearing will help the regulator assess whether the requested adjustment is justified. The authority will then decide whether the additional fuel costs can be recovered from electricity consumers.
The CPPA’s request does not mean that an increase has already been approved. Any change in electricity tariffs will depend on NEPRA’s final decision.
Consumers will have to wait for the regulator’s ruling to learn whether the September fuel cost adjustment will affect their bills.
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