Electricity Prices Likely to Increase Further Across Pakistan: Consumers Face Additional Financial Burden Under August Fuel Adjustment
ISLAMABAD: The power consumers are reviving their preparations for another tariff revision as the authorities are planning to revise the tariff rates under a new monthly fuel cost adjustment (FCA) for electricity consumers, including consumers of K-Electric and ex-Wapda distribution companies (DISCOs).
Central Power Purchasing Agency (CPPA) has formally written to the National Electric Power Regulatory Authority (NEPRA) for Rs1.73 price hike per unit in electricity prices due to fuel adjustment for the month of August. NEPRA will hold a public hearing on the petition today to consider the financial information.
The operational costs and August generation breakdown.
The August power generation statistics and fuel shares, as reported to the CPPA, included the following:
Electricity distributed to the electricity companies during the month amounted to 14.464 billion units and the overall average cost of electricity delivered was Rs8.82 per unit.
Energy Generation Mix: Hydropower accounted for the largest proportion (37.84%), followed by imported coal (15.59%), local coal (10.88%) and imported liquefied natural gas (8.48%). Local gas was 7.04% and furnace oil was 2.15%.
Expensive Fuel Sources: The data showed that the prices of fuel sources being used for thermal generation were high, with furnace oil based electric generation costing Rs45.25 per unit and imported LNG based power generation costing Rs45.92 per unit.
The extra fuel adjustment, if approved by the regulator, will be reflected on consumers’ bills nationwide.