Electricity consumers across Pakistan may soon face higher prices for power bills as the National Electric Power Regulatory Authority (NEPRA) considers a request to increase electricity tariffs by Rs1.20 per unit under the monthly Fuel Charges Adjustment (FCA) mechanism.
The proposed adjustment comes at a time when households are already dealing with rising living costs, making another increase in electricity prices in Pakistan, a concern for consumers nationwide.
According to reports, the proposed increase has been submitted by the Central Power Purchasing Agency (CPPA) for electricity generated during June. NEPRA is scheduled to hear the request before making a final decision. The additional charge of Rs1.20 per unit will be reflected in consumers’ August electricity bills for one month, upon approval. The increase is also expected to apply to K-Electric customers.
Electricity generation sources in June
The reports submitted to NEPRA provide a breakdown of Pakistan’s electricity generation mix during June:
- Hydropower remained the largest source of electricity, contributing 39% of total power generation during June
- Locally sourced coal accounted for 10.11% of electricity generation
- Imported coal contributed 12.65% to the country’s total electricity supply
Other energy sources
The report also showed other imported contributions of electricity generation during June:
- Imported natural gas generated 11.02% of Pakistan’s electricity during June
- Nuclear power plants supplied 13.40% of the country’s electricity production
These generation figures are used by NEPRA to calculate monthly Fuel Charges Adjustments (FCA), which are based on the difference between estimated and actual fuel costs for electricity generation.
Additionally, Fuel charges adjustment is a routine under Pakistan’s power tariff system. It allows electricity prices to be revised monthly based on fluctuations in fuel costs and electricity generation. However, the latest proposal seeks an upward revision due to the fuel costs of June calculations.
Consumers are now awaiting NEPRA’s final decision, which will determine whether the proposed surcharge is implemented in August bills.
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