NEPRA to decide on Rs2.56 hike

Average fuel cost rose to Rs10.02 per unit against a reference price of Rs7.46

ISLAMABAD:

The National Electric Power Regulatory Authority (NEPRA) on Wednesday reserved its decision on a proposal to raise electricity prices by Rs2.56 per unit for September under the monthly fuel charges adjustment, a move that would also affect K-Electric consumers under government policy guidelines.

NEPRA completed a hearing on a petition filed by the Central Power Purchasing Agency (CPPA-G), with officials attributing the increase largely to higher international fuel prices. Spot liquefied natural gas (LNG) cargoes were available at about $27.33, the officials said.

The average fuel cost of electricity in September rose to Rs10.02 per unit against a reference price of Rs7.46, according to CPPA-G. Total power generation costs reached Rs127.87 billion during the month.

RLNG-based generation accounted for Rs31.93 billion of the cost, followed by imported coal at Rs37.14 billion, local gas at Rs13.89 billion, diesel at Rs13.26 billion, furnace oil at Rs11.81 billion and local coal at Rs7.95 billion.

Power consumption also increased, with nationwide demand reaching 10,549 gigawatt-hours (GWh) in September, up 645 GWh, or about 6.5%, from 9,904 GWh a year earlier.

Residential consumption rose 8.4% to 5,810 GWh, while industrial use increased 6.7% to 2,597 GWh. Commercial consumption grew 3.2%, general services 3% and bulk consumers 1%.

Agricultural consumption was the main exception, falling 6.7% to 376 GWh, while consumption in other sectors increased 7.3%. Distribution companies sold 12.76 billion units during the month.

The hearing also highlighted a shortfall in RLNG supplies to power plants. The sector's daily demand was 350 million cubic feet per day (MMCFD), while Sui Northern Gas Pipelines Ltd supplied 218 MMCFD. Actual consumption stood at 194 MMCFD, equal to about 90% of the allocated volume.

Plant-level figures showed continued differences between demand and supply. Haveli Bahadur Shah sought 78 MMCFD but received 10.7 MMCFD, while Bhikki's demand was 130 MMCFD against an allocation of 51.8 MMCFD. The allocation to the 130-MMCFD-demand Balu ki power plant was 129.2 MMCFD.

In September, Haveli Bahadur Shah generated 29.92 GWh from RLNG, while Bhikki and Balu ki generated 229 GWh and 506 GWh respectively.

NEPRA will issue its decision on the CPPA-G petition separately.