Electricity to be costlier for a month as NEPRA allows Rs0.19 per unit hike
A technician from Karachi Electric , Pakistan's largest city's power supply company, checks electricity meters at a residential building in Karachi. PHOTO: AFP
The National Electric Power Regulatory Authority has approved an increase of Rs0.19 per unit in the electricity tariff under the monthly fuel cost adjustment mechanism.
The hike will apply to all electricity distribution companies, including K-Electric, but will exclude lifeline consumers, prepaid users, and electric vehicle charging stations.
According to a notification issued by NEPRA, the hike falls under the August Fuel Cost Adjustment (FCA) mechanism and will be reflected in electricity bills for October.
NEPRA held a public hearing at its headquarters, chaired by the authority’s chairman, where representatives of the Central Power Purchasing Agency, business community members, Ministry of Energy officials, journalists, and members of the public were present.
The CPPA-G had requested an increase of 19 paisas per unit. NEPRA stated that it carefully heard the views of all stakeholders during the hearing. The authority will release a detailed decision after further scrutiny of the submitted data.
Electricity cost of production in August
In August, a total of 102.94 billion units of electricity were supplied to distribution companies. The overall cost of power generation stood at Rs7.50 per unit, slightly higher than the previous rate of Rs7.31 per unit. Electricity generated, using local coal, cost Rs12.01 per unit, while the use of imported coal increased the cost to Rs14.07 per unit.
Power production through furnace oil was significantly higher at Rs33 per unit, whereas gas-based generation cost stood at Rs13.43 per unit. Similarly, electricity generated using LNG stood at Rs21.73 per unit. Imported electricity from Iran proved to be the most expensive at Rs41 per unit, while bagasse-based generation was relatively cheaper at Rs9.87 per unit.