Electricity consumers across Pakistan could face another increase in power costs following a new request by the Central Power Purchasing Agency. The CPPA has asked the National Electric Power Regulatory Authority for a Rs 2.52 per unit increase.
According to NEPRA, the request has been submitted under the fuel price adjustment for July. If approved, the adjustment could result in higher Electricity Bills for affected consumers.
CPPA Seeks Rs 2.52 Per Unit Increase
The CPPA provided details about electricity generation costs during July as part of its request.
Electricity generated using imported liquefied natural gas was among the more expensive sources during the month. According to the request, LNG-based electricity cost Rs 47.37 per unit in July.
Around Rs 77.19 billion was spent on electricity generation using imported LNG. LNG accounted for 10.78% of the country’s total electricity generation during the month.
Furnace oil was another expensive source used for power generation. Its share in total generation stood at 1.42% during July.
The generation cost from furnace oil reached Rs 50.07 per unit. The CPPA said around Rs 10.77 billion was spent on electricity generated through furnace oil.
Hydropower Leads Electricity Generation
Hydropower provided the largest share of electricity generation during July.
According to the CPPA data, hydropower accounted for 39.81% of total generation. Local coal contributed 10.91% of electricity generation during the same period.
Imported coal had a higher share of 14.38%. Nuclear power plants accounted for 10.10% of total electricity generation.
The fuel cost of nuclear-generated power remained considerably lower than several thermal sources. Nuclear electricity had a reported fuel cost of Rs 3.02 per unit.
Diesel Power Costs Rs 54.47 Per Unit
Diesel was also used to generate electricity during July. Around 31 million units of electricity were produced using diesel during the month.
The cost of diesel-based generation reached Rs 54.47 per unit. This was higher than the reported generation costs for LNG and furnace oil.
The proposed adjustment could affect Electricity Bills if NEPRA approves the CPPA request. However, the Rs 2.52 per unit increase remains a request at this stage.
NEPRA will consider the application under the relevant fuel price adjustment process. Any final impact on consumers will depend on the regulator’s decision and its applicable terms.
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The development comes as generation costs remain an important factor in determining Electricity Bills across the country.
