Power Division warns fuel adjustment may rise two to three times in winter

The Power Division has warned that the fuel price adjustment (FPA) on electricity bills could rise two to three times between December and February, according to Power Division sources cited by TechJuice and Express News. The division described December, January and February as the most difficult months for electricity consumers this year.

Sources gave several reasons. Rising prices of LNG, coal and other fuels are pushing up the cost of generating electricity. Local gas supply to power plants is expected to fall short in winter, and hydropower output is expected to drop sharply in the cold season, forcing greater reliance on costlier fuels.

Authorities limited the burden on consumers in recent months through two-hour load management. Express News reported that load management in electricity supply may increase during the December to February period. The Power Division said the September adjustment could have reached Rs5 to Rs6 per unit without such intervention.

On the September adjustment, NEPRA has reserved its decision on a request to raise tariffs by Rs2.56 per unit. If approved, the increase would add Rs32.66 billion in burden on consumers nationwide, including Karachi.

Officials of the Central Power Purchasing Agency (CPPA) said the average fuel cost of electricity in September was Rs10.02 per unit, against a projected Rs7.46. Total generation cost for the month was Rs127.87 billion, and distribution companies sold 12.76 billion units.

By fuel, imported coal accounted for Rs37.14 billion of the September generation cost, LNG for Rs31.93 billion, local gas for Rs13.89 billion, diesel for Rs13.26 billion, furnace oil for Rs11.81 billion and local coal for Rs7.95 billion.

Express News also reported that the price of LPG has not come down, with a difference of Rs300 between the official price and the market price.