Islamabad (Commerce Desk): Preparations are underway to increase electricity tariffs for consumers across the country, with the per-unit price likely to rise by Rs2.56. The proposed increase could impose an additional burden of Rs32.66 billion on consumers.
The National Electric Power Regulatory Authority (NEPRA) held a hearing on an application submitted by the Central Power Purchasing Agency (CPPA) under the monthly fuel price adjustment mechanism. Following the hearing, NEPRA reserved its decision.
During the hearing, CPPA officials said that fuel prices in the international market, including liquefied natural gas (LNG), were currently at extremely high levels. The average fuel cost of electricity generation in September stood at Rs10.02 per unit, compared with the estimated cost of Rs7.46 per unit.
According to officials, the total cost of electricity generation during September amounted to Rs127.87 billion. The cost of generating electricity from local coal was Rs7.95 billion, imported coal Rs37.14 billion, diesel Rs13.26 billion and furnace oil Rs11.81 billion.
During the same period, electricity generation from local gas cost Rs13.89 billion, while power generation using LNG amounted to Rs31.93 billion.
CPPA officials informed the hearing that electricity distribution companies sold a total of 12.76 billion units of electricity during September.