Electricity Consumers Face Possible Rs0.82 Per Unit Increase as CPPA Moves NEPRA

Electricity consumers across Pakistan, including Karachi, could see a fresh increase in their power bills after the Central Power Purchasing Agency (CPPA) sought a hike of Rs0.82 per unit under the monthly fuel cost adjustment mechanism for May.

The National Electric Power Regulatory Authority (NEPRA) will hold a hearing on June 30 to consider the request. If approved, the adjustment would result in an estimated additional burden of around Rs12 billion on consumers nationwide.

According to details submitted by the CPPA, the country generated 12.638 billion units of electricity during May. The average fuel cost of electricity generation stood at Rs9.25 per unit, compared with the reference fuel cost of Rs8.43 per unit, prompting the agency to seek the increase.

Hydropower remained the largest source of electricity generation during the month, contributing 33.27 percent to the national energy mix. Indigenous coal-fired plants accounted for 11.66 percent of total generation, while imported coal contributed 13.54 percent.

The report also showed that electricity produced through furnace oil made up just 0.16 percent of the total generation. Domestic natural gas accounted for 8.31 percent, whereas imported liquefied natural gas (LNG) contributed 11.81 percent.

Meanwhile, nuclear power plants supplied 14.25 percent of the country’s electricity during May, highlighting their growing role in the national energy mix.

The latest request comes shortly after electricity consumers received some relief through a reduction in tariffs. However, the proposed fuel cost adjustment could partially offset that benefit if approved by the regulator.

NEPRA will review the petition at a public hearing before issuing its final decision on whether the increase should be passed on to consumers.

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