Key Takeaways
- CPPA has requested a tariff hike of Rs1.73 per unit for August.
- The National Electric Power Regulatory Authority (Nepra) will hear the request on September 29.
- The hike will apply to all electricity consumers, including those of K-Electric.
ISLAMABAD: Electricity consumers across Pakistan may face a significant increase in their bills, with the Central Power Purchasing Agency (CPPA) requesting a Rs1.73 per unit tariff hike for August. This move comes as the CPPA has filed an application with the National Electric Power Regulatory Authority (Nepra), which will review the request on September 29.
The proposed increase will affect all electricity consumers, including those of K-Electric (KE), according to the application. The CPPA has detailed the cost breakdown of electricity generation, which includes a substantial contribution from furnace oil and imported liquefied natural gas (LNG).
In August, the CPPA supplied 14.464 billion units of electricity to distribution companies (Discos) at an average cost of Rs8.82 per unit. The generation mix included 37.84 per cent from hydropower, 10.88 per cent from local coal, and 15.59 per cent from imported coal. Additionally, 2.15 per cent was generated from furnace oil, 7.04 per cent from local gas, and 8.48 per cent from imported LNG.
The cost of electricity generated from furnace oil was Rs45.25 per unit, while that from imported LNG was Rs45.92 per unit. These costs are significantly higher than the average cost of Rs8.82 per unit, contributing to the proposed tariff hike.
Last month, Nepra had approved a financial burden of about Rs9.8 billion on electricity consumers by allowing a fuel cost adjustment of 75.03 paise per unit in August electricity bills. This adjustment was to be applicable to all consumer categories of KE and ex-Wapda distribution companies, except for lifeline consumers, electric vehicle charging stations, and pre-paid electricity consumers of all categories who had opted for the pre-paid tariff.
Nepra had also decided that the positive fuel cost adjustment (FCA) for June 2026, amounting to Rs0.7503 per kilowatt-hour, would apply to all consumer categories of KE and ex-Wapda distribution companies, except for the aforementioned categories. Distribution companies and KE were directed to reflect the fuel cost adjustment for June this year in electricity bills issued for August.
The CPPA's request for a tariff hike is based on the rising costs of fuel and generation, which have increased the overall cost of electricity. The hike is expected to affect a wide range of consumers, from residential to commercial and industrial sectors, potentially impacting household budgets and business operations.
