Rs2.63/unit power tariff hike proposed

NEPRA to hold public hearing on July 31 regarding proposed increase

ISLAMABAD:

Electricity consumers are set to face another significant financial burden as the power tariff is poised to increase by Rs2.63 per unit, adding to their already substantial expenses. This anticipated hike comes on account of the Fuel Charges Adjustment (FCA) for electricity that was consumed during June 2024.

The Central Power Purchasing Agency (CPPA), acting on behalf of distribution companies (DISCOs), has formally submitted an application to the National Electric Power Regulatory Authority (NEPRA) to request an increase in the electricity price by Rs2.6307 per kilowatt hour (kWh) under the FCA for June 2024.

According to the detailed submission by the CPPA, the reference fuel charges collected from consumers for June were set at Rs7.1403 per unit, while the total actual cost per unit amounted to a higher Rs9.7710. In response to this request for a tariff hike, NEPRA has scheduled a public hearing to discuss and review the application on July 31, 2024.

The application from the CPPA reveals that the total electricity generated using various fuel sources in June 2024 was recorded at 13,459 GWh, with an average cost of Rs8.8938 per unit. The comprehensive cost of energy production for the month reached a substantial Rs119,704 million. Hydropower generation, which is a zero-cost source of energy, accounted for 4,729 GWh or 35.13% of the total power produced during the month. In contrast, coal-fired power plants contributed 2,126 GWh (1,489 GWh from local coal and 637 GWh from imported coal) to the total energy mix, with the combined generation cost amounting to Rs26,321 million (Rs11.0295 per unit for local coal and Rs15.5349 per unit for imported coal).

Gas-based power plants added 1,166 GWh to the total generation, representing 8.66% of the overall production, at a cost of Rs13.9275 per unit. Additionally, power plants using Re-gasified Liquefied Natural Gas (RLNG) generated 2,437 GWh, which constituted 18.10% of the total generation, at a cost of Rs26.3286 per unit.

Furthermore, power production from bagasse, a renewable source, was recorded at 60 GWh, with the cost calculated at Rs5.9822 per unit. Wind energy contributed 516 GWh, accounting for 3.83% of the total generation, while solar energy added 118 GWh, representing 0.87% of the total power produced in June 2024.

Nuclear power generation, which is a critical component of the energy mix, stood at 1,998 GWh, with a low cost of Rs1.5255 per unit, and accounted for 14.85% of the total electricity generated. Additionally, electricity imported from Iran amounted to 48 GWh, with a high cost of Rs26.6597 per unit, contributing a modest 0.35% to the overall power generation for June 2024.

The data submitted by the CPPA to NEPRA indicated that the net electricity delivered to DISCOs in June 2024 was 13,071 GWh, representing 97.11% of the total generated power, at an average rate of Rs9.7710 per unit. This resulted in a total cost of Rs127,712 million for the electricity supplied to the distribution companies.