CPPA proposes Rs2.56 per unit hike in electricity tariff

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has requested a Rs2.56 per unit increase in electricity prices under the monthly fuel price adjustment for September, submitting its application to the National Electric Power Regulatory Authority (NEPRA).

The proposed hike is intended to recover additional fuel expenses incurred during September. NEPRA is scheduled to hold a public hearing on October 29 to review the request.

In its application, the CPPA stated that the average fuel cost of electricity generation was initially estimated at Rs7.46 per unit but increased to Rs10.02 during the month.

The agency reported spending Rs7.95 billion on electricity generated using local coal and Rs37.14 billion on imported coal. Meanwhile, diesel-based power generation cost Rs13.26 billion, while Rs11.81 billion was spent on furnace oil.

According to the application, electricity production using local gas amounted to Rs13.89 billion, while generation through liquefied natural gas (LNG) cost Rs31.93 billion. The overall fuel expenditure for power generation reached Rs127.87 billion in September.

The CPPA also reported that distribution companies (DISCOs) supplied 12.76 billion units of electricity during the month. NEPRA will examine the application and hear the relevant stakeholders before deciding whether to approve the proposed tariff adjustment.