The Central Power Purchasing Agency (CPPA) has asked the National Electric Power Regulatory Authority (NEPRA) to approve an increase of 82 paisa per unit in electricity price under the monthly fuel cost adjustment for May.
NEPRA is due to hold a public hearing on the request on Wednesday before deciding whether the increase should be passed on to consumers.
During the hearing, the regulator will examine the fuel cost adjustment submitted by the CPPA, including the cost of electricity generation, fuel prices and the potential impact on consumers.
If approved, the increase could place an additional financial burden of around Rs12bn on electricity users through future power bills.
According to the CPPA, Pakistan generated 12.64 billion units of electricity during May. The average fuel cost of generation was Rs9.25 per unit, compared with a reference fuel cost of Rs8.43 per unit, creating a gap that the agency says should be recovered from consumers.
The data submitted to NEPRA shows that hydropower remained the largest source of electricity generation during the month, accounting for 33.27% of total output.
The electricity generated from local coal made up 11.66%, while imported coal contributed 13.54%. Local natural gas accounted for 8.31% of generation, and furnace oil contributed 0.16%.
Fuel cost adjustments are reviewed every month to reflect changes in the cost of generating electricity.
Any increase approved by NEPRA is usually recovered through consumers’ electricity bills, while reductions are passed on as lower charges.
The regulator is expected to issue its decision after reviewing the application and hearing submissions from stakeholders.
