NEPRA reserves decision on Rs2.56 per unit power price rise
NEPRA has reserved its decision on a proposed Rs2.56 per unit increase in electricity prices for September. The increase would add about Rs32.7 billion to consumers' bills if approved.
- NEPRA reserved its decision after a hearing on a CPPA-G petition.
- The proposed fuel charges adjustment for September is Rs2.56 per unit.
- Recovery from consumers would be about Rs32.7 billion.
- Average fuel cost was Rs10.02 per unit against a reference of Rs7.46.
The National Electric Power Regulatory Authority (NEPRA) has reserved its decision on a proposal to raise electricity prices by Rs2.56 per unit for September under the monthly fuel charges adjustment. The hearing was held on a petition filed by the Central Power Purchasing Agency (CPPA-G).
According to Business Recorder, the proposed positive adjustment of Rs2.5624 per unit would recover Rs32.7 billion from consumers. Daily Pakistan also reported the Rs32.70 billion figure. The Express Tribune reported that the increase would also apply to K-Electric consumers under government policy guidelines.
Business Recorder reported that NEPRA questioned CPPA-G and PPMC over what it described as unreliable power-sector data. Industrial consumers also questioned the use of expensive fuels despite cheaper generation sources being available.
According to CPPA-G, the average fuel cost of electricity in September rose to Rs10.02 per unit, against a reference price of Rs7.46. Total generation costs reached Rs127.87 billion. Of this, RLNG-based generation cost Rs31.93 billion, imported coal Rs37.14 billion, local gas Rs13.89 billion, diesel Rs13.26 billion, furnace oil Rs11.81 billion and local coal Rs7.95 billion.
Officials attributed the proposed rise largely to higher international fuel prices. They said coal prices rose by $15 per ton and that RLNG spot cargoes reached about $28 per MMBtu. The Express Tribune quoted officials as saying spot LNG cargoes were available at about $27.33.
Officials also said a purchase of LNG spot cargoes was cancelled after expensive bids. A bid of $27 per MMBtu was received, but with other charges the cost was reaching $33.
Nationwide power demand in September was 10,549 GWh, up 645 GWh or about 6.5% from 9,904 GWh a year earlier. Residential consumption rose 8.4% to 5,810 GWh and industrial use rose 6.7% to 2,597 GWh. Agricultural consumption fell 6.7% to 376 GWh. Distribution companies sold 12.76 billion units.
On RLNG, the sector's daily demand was 350 MMCFD, while SNGPL supplied 218 MMCFD. Actual consumption was 194 MMCFD, about 90% of the allocated volume. Haveli Bahadur Shah sought 78 MMCFD but received 10.7 MMCFD.
Why it matters
If NEPRA approves the adjustment, electricity bills would rise for households and businesses across Pakistan, including K-Electric consumers.
