Power tariff increase puts Rs29.5b additional burden on consumers

Nauman Yasin
By
Nauman Yasin
Nauman Yasin reports on social, political, and cultural developments, offering a clear view of the issues shaping society. His work emphasises factual, balanced coverage that resonates...
2 Min Read

Summary

  • Electricity consumers, including those served by K-Electric, could face an additional financial burden of Rs29.5 billion if a proposed Rs1.73 per unit increase in tariffs is approved under the fuel adjustment mechanism for August 2026.
  • The National Electric Power Regulatory Authority (NEPRA) held a public hearing on Tuesday to examine a petition filed by the Central Power Purchasing Agency (CPPA), which has requested a Rs1.73 per unit increase in electricity rates.
  • Power generation during August reached 14.464 billion units, with electricity produced at an average cost of Rs8.82 per unit, compared with a reference rate of Rs7.0998 per unit.
AI Generated Summary
Electricity consumers, including those served by K-Electric, could face an additional financial burden of Rs29.5 billion if a proposed Rs1.73 per unit increase in tariffs is approved under the fuel adjustment mechanism for August 2026.

The National Electric Power Regulatory Authority (NEPRA) held a public hearing on Tuesday to examine a petition filed by the Central Power Purchasing Agency (CPPA), which has requested a Rs1.73 per unit increase in electricity rates.

The regulator reserved its decision, stating that a detailed ruling would be issued after a comprehensive review of the financial figures and calculations presented during the hearing.

CPPA officials informed the hearing that Rs20.7142 billion of the requested amount was directly associated with payments made to Independent Power Producers (IPPs).

Power generation during August reached 14.464 billion units, with electricity produced at an average cost of Rs8.82 per unit, compared with a reference rate of Rs7.0998 per unit.

Hydropower accounted for the largest share of the energy mix at 37.84% of total generation, while imported coal contributed 15.59%.

Other sources included local coal, which supplied 10.86% of overall generation, Liquefied Natural Gas (LNG) at 8.48% and local gas at 7.04%. LNG-based power generation was the most expensive source, with its cost reaching as high as Rs45.92 per unit.

According to details presented by the CPPA, a number of power producers submitted significant adjustment claims.

The claims included Rs1.3246 billion for Chashma Nuclear Power Plant (C2), Rs528.1 million for Tavanir Iran, Rs183.8 million for Punjab Thermal Power Private and Rs159 million for Thar Coal Block-I Power Generation Company.

Other claims submitted by individual companies included Rs36.1 million, along with an additional Rs1.6 million in CV adjustments, by Nishat Power Limited; Rs26.3 million by Engro Powergen Thar; Rs13.9 million by Narowal Energy Limited; and Rs286,000 by Lucky Electric Power Company.

A provisional adjustment of Rs10.6168 billion for July and August has also been set aside for power plants operating on Regasified Liquefied Natural Gas (RLNG).

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Nauman Yasin reports on social, political, and cultural developments, offering a clear view of the issues shaping society. His work emphasises factual, balanced coverage that resonates with diverse audiences. Through his stories, he seeks to highlight perspectives that often go unheard.
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