NEPRA to consider Rs2.52 per unit electricity price increase for July

The Central Power Purchasing Agency (CCPA) has approached the National Electric Power Regulatory Authority (NEPRA) seeking an increase of Rs2.52 per unit in electricity

ISLAMABAD: The Central Power Purchasing Agency (CCPA) has approached the National Electric Power Regulatory Authority (NEPRA) seeking an increase of Rs2.52 per unit in electricity tariffs under the fuel price adjustment mechanism for July.

According to details released by NEPRA, the CCPA has filed its monthly fuel price adjustment petition, requesting that the additional generation costs incurred during July be passed on to electricity consumers across the country.

The proposed adjustment, if approved by the regulator, is expected to place an additional financial burden of around Rs41 billion on consumers, including the applicable general sales tax (GST).

The petition highlights significant variations in the cost of electricity generated from different fuel sources during the month. According to the CCPA, around 10.78% of the total electricity generation in July came from imported liquefied natural gas (LNG). The cost of electricity generated through LNG stood at approximately Rs47.37 per unit, with LNG-based power generation accounting for Rs77.19 billion in total generation costs.

Furnace oil also contributed to the country’s electricity generation during the month. The CCPA reported that 1.42% of electricity was produced using furnace oil, while the total cost of such generation was around Rs10.77 billion. The fuel cost associated with furnace-oil-based generation was significantly higher than that of several other sources.

Hydropower remained an important component of the generation mix, accounting for 39.81% of electricity produced during July. Local coal contributed 10.91%, while imported coal accounted for another 14.38% of overall generation.

Nuclear power also maintained a notable share in the national generation mix, contributing 10.10% of electricity during the month. The fuel cost of nuclear-based generation was considerably lower than that of oil- and LNG-fired plants, with the petition placing it at around Rs3.20 per unit.

The CCPA also reported limited electricity generation from diesel during July. Approximately 31 million units were produced through diesel-fired generation, with the fuel cost estimated at around Rs54.47 per unit.

The proposed tariff adjustment is part of the routine monthly mechanism through which changes in fuel costs are reflected in electricity bills. Under this system, the actual cost of power generation is compared with the previously determined reference fuel price, with the difference subsequently adjusted in consumer tariffs following regulatory approval.

NEPRA has scheduled a public hearing on the CCPA petition for August 27, where the regulator will examine the claimed generation costs and determine whether the requested adjustment is justified.

If NEPRA approves the CCPA’s request in its proposed form, electricity consumers would face an additional burden estimated at Rs41 billion, including GST. The impact on individual consumers would vary depending on their electricity consumption, tariff category and applicable government policies.

The final adjustment will be determined by NEPRA after reviewing the CCPA’s data and hearing the views of relevant stakeholders. Consumers are expected to see the approved adjustment reflected in their electricity bills according to the regulator’s final decision.