NEPRA to hear plea for Rs0.82 per unit fuel cost increase

ISLAMABAD: Electricity consumers across Pakistan, including Karachi, could see another increase in their power bills as the National Electric Power Regulatory Authority is set to examine a request for a Rs0.82 per unit rise under the monthly fuel cost adjustment mechanism.

The request has been submitted by the Central Power Purchasing Agency, which asked the regulator to adjust fuel charges for electricity generated in May. NEPRA is scheduled to hold a public hearing on the petition on June 30.

According to the petition, if the proposed adjustment is approved, it would place an additional burden of about Rs12 billion on electricity consumers nationwide. The CPPA told the regulator that 12.638 billion units of electricity were generated during May.

The petition said the average fuel cost of power generation stood at Rs9.25 per unit during the month, compared with a reference fuel cost of Rs8.43 per unit. The gap between the two figures forms the basis for the proposed fuel cost adjustment.

Power generation mix for May

Documents filed with NEPRA show that hydropower was the biggest source of electricity generation in May, making up 33.27% of the overall energy mix. Local coal contributed 11.66%, while imported coal accounted for 13.54% of total generation.

Electricity produced from local natural gas represented 8.31% of the mix, and imported liquefied natural gas contributed 11.81%. Nuclear power also remained a major component, accounting for 14.25% of electricity generation during the month, according to the petition.

The submitted figures also showed the limited role of furnace oil in the generation mix, with its share recorded at 0.16% in May.

Monthly fuel cost adjustments are routinely determined by NEPRA to reflect changes in fuel prices as well as shifts in the composition of electricity generation sources.