ISLAMABAD:
Electricity consumers across the country, including those in Karachi, may face a further hike in electricity bills as the National Electric Power Regulatory Authority (Nepra) is set to consider a request for an increase of Rs0.82 per unit under the monthly fuel cost adjustment mechanism.
The proposed hike has been sought by the Central Power Purchasing Agency (CPPA), which has petitioned the regulator for adjustment of fuel charges for electricity generated during May. Nepra is scheduled to hold a public hearing on the matter on June 30.
According to the petition, approval of the request would impose an additional burden of around Rs 12 billion on electricity consumers across the country.
CPPA informed the regulator that a total of 12.638 billion units of electricity was produced during May. The average fuel cost of power generation remained at Rs 9.25 per unit, higher than the benchmark fuel cost of Rs 8.43 per unit, resulting in the proposed adjustment.
Documents submitted to NEPRA show that hydropower remained the largest source of electricity generation during the month, accounting for 33.27% of the total energy mix.
Electricity produced from local coal contributed 11.66%, while imported coal accounted for 13.54% of the total generation. Furnace oil, once a major source of thermal power generation, accounted for just 0.16% of the total generation mix during the month.
The electricity generation data further revealed that 8.31% of electricity was generated using local natural gas, while imported liquefied natural gas (LNG) contributed 11.81%. Nuclear power also remained a significant component of the national energy mix, accounting for 14.25% of total electricity generation in May, according to the petition.
Monthly fuel cost adjustments are routinely determined by NEPRA to reflect fluctuations in fuel prices and changes in the electricity generation mix.
