Electricity Likely to Become Costlier by Rs 2.56 Per Unit in Pakistan; Consumers Face Additional Financial Burden of Rs 32.7 Billion as CPPA Cites Global Surges in RLNG and Coal Prices
ISLAMABAD: With electricity rates set to rise by Rs 2.56 per unit, Pakistan’s electric consumers will have to deal with another financial burden of Rs 32.7 billion.
The development has come during a public hearing being held by the National Electric Power Regulatory Authority (NEPRA) on a petition from the Central Power Purchasing Agency (CPPA), asking for a hike in electricity tariff for September under the mechanism of monthly Fuel Cost Adjustment (FCA).
The four key highlights of the NEPRA Hearing and CPPA’s Fuel Price Justification are discussed.Four key highlights of NEPRA Hearing and CPPA’s Fuel Price Justification are discussed.
The rising international market prices of all major fuels, including Regasized Liquefied Natural Gas (RLNG) were cited by the officials of the CPPA in the proceedings to support the petition.During the proceedings, officials of the CPPA defended the petition with reference to the significant increase in world market prices of all major fuels including Regasized LNG (RLNG).
Spot cargo prices for LNG have jumped as much as $28 per million British thermal units (MMBtu), officials told reporters.RLNG spot cargo prices have risen as high as $28 per million British thermal units (MMBtu), officials said. A spot cargo bid was received, but was later matched with large shipping and handling fees which resulted in an effective landed price of $33 per MMBtu, so authorities cancelled the spot procurement process because of the high price.
Impact on Consumers: Petition calls for a rise in electricity tariff to cover the escalation of electricity generation costs due to the cost of fuel. The change will put an additional Rs 32.7 billion into the pockets of electricity consumers across the country, if approved by NEPRA.