CPPA applies for Rs2.56 per unit rise in electricity tariff

Islamabad: The Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) requesting an increase of Rs2.56 per unit in electricity tariffs under the monthly fuel price adjustment for September. According to the filing, the rise is intended to recover additional fuel costs incurred during the month from consumers. NEPRA has scheduled a public hearing for October 29 to examine the CPPA’s request for extra fuel cost recovery for the September billing period.

The CPPA said the average fuel cost per unit of electricity was estimated at Rs7.46 for September but actually rose to Rs10.02 per unit. It reported that electricity generated from local coal cost Rs7.95 billion, while power generation using imported coal amounted to Rs37.14 billion during the month. Diesel expenses totalled Rs13.26 billion and furnace oil costs reached Rs11.81 billion. Power generation using local gas accounted for Rs13.89 billion, and electricity produced through liquefied natural gas (LNG) cost Rs31.93 billion. The overall fuel cost for electricity generation in September stood at Rs127.87 billion, the agency added.

Distribution companies (DISCOs) sold 12.76 billion units of electricity in September. NEPRA will review the CPPA’s application and hear from relevant stakeholders before deciding on the proposed tariff adjustment. The notice also noted that electricity prices had been hiked for one month under the fuel price adjustment mechanism.