Electricity consumers may soon face higher bills, as the Central Power Purchasing Agency (CPPA) has proposed a tariff increase of Rs. 1.25 per unit to the National Electric Power Regulatory Authority (NEPRA).
The proposal relates to the monthly fuel price adjustment (FPA) for April, aiming to recover the difference between projected and actual fuel costs.
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According to the CPPA’s submission, a total of 10.513 billion units of electricity were produced in April, with 10.196 billion units supplied to distribution companies. While the reference fuel cost was set at Rs. 7.68 per unit, the actual expense surged to Rs. 8.94 per unit, prompting the agency to seek compensation from consumers.
NEPRA has scheduled a public hearing for May 29 to assess the request and determine whether the proposed hike should be approved.
The application also outlined the energy mix for April: 21.94% of electricity came from hydropower, 14.51% from locally sourced coal, 10.02% from imported coal, and 0.97% from furnace oil. Local gas contributed 8.01%, while imported LNG made up 20.52%. Nuclear energy accounted for 17.91% of the total generation.
The increased reliance on costly imported fuels, especially LNG, has significantly pushed up production costs, leading to the suggested rise in electricity tariffs.
