ISLAMABAD:
Power consumers across the country, including those in Karachi, may face yet another hike in their electricity bills as the National Electric Power Regulatory Authority (Nepra) is set to consider a request for an increase of Rs 0.82 per unit under the monthly fuel cost adjustment mechanism.
The proposed increase was requested by the Central Power Purchasing Agency (CPPA), which filed an application with the regulator for adjustment of fuel charges for electricity generated in May. Nepra is expected to hold a public hearing on the matter on June 30.
According to the petition, approval of the application would impose an additional burden of around Rs 12 billion on power consumers nationwide.
The CPPA informed the regulator that a total of 12.638 billion units of electricity were generated during the month of May. The average fuel cost for power generation remained at Rs 9.25 per unit, higher than the benchmark fuel cost of Rs 8.43 per unit, prompting 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. Fuel oil, once a major source of thermal power generation, accounted for just 0.16% of the overall generation mix during the month.
Power generation data further revealed that 8.31% of electricity was generated from local natural gas, while imported liquefied natural gas (LNG) contributed 11.81%. Nuclear power also remained an important 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 regularly determined by NEPRA to reflect fluctuations in fuel prices and changes in the electricity generation mix.
