NEPRA is expected to approve a significant increase in electricity prices due to fuel charges adjustment (FCA), which could further burden the already inflation-hit masses in Pakistan. The Central Power Purchasing Agency (CPPA) has requested a substantial increase of Rs4.9917 per unit in electricity tariffs for the electricity consumed in February.
The CPPA, representing Ex-Wapda Discos, has cited a reference fuel charge of Rs4.4337 per unit for February, while the actual cost of energy delivered to Discos was Rs9.4254 per unit. If approved by NEPRA, this increase will result in an additional burden of Rs40 billion on electricity consumers.
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NEPRA is set to conduct a public hearing on March 28, 2024, to evaluate the petition submitted by CPPA. The data provided by CPPA highlights varying costs for electricity generation from different sources, ranging from Rs1.3213 per unit for nuclear power to Rs27.1968 per unit for electricity imported from Iran.
It’s worth noting that no electricity was generated from Diesel and Furnace Oil during the month under review. This impending increase in electricity prices adds to the challenges faced by consumers amidst already elevated inflation rates in the country.
