Power rate likely to increase during summer months

A technician works on porcelain insulators on the power transmission tower in Karachi. – Reuters / File
  • Consumers of final power can undergo an increase in rates, mainly at the head of the FCA.
  • The CPPA-G requests a negative adjustment of 3 paisa per unit in FCA.
  • The NPCC warns against the expected increase in electricity rates during the summer months.

Islamabad: Consumers of final power are most likely to undergo an increase in prices, mainly at the head of the adjustment of fuel costs (FCA) while the government will relieve the electricity rate of 7.41 rupees per unit in May, The news reported.

Due to the drop in water level in the Tarbela and Mangla dams and the Neelum-Jehlum dysfunctional project, which was more dependent on costly thermal energy production, the likely increase in electricity rates is mainly due to lower production in hydroelectricity during the summer months.

This was communicated by the director general of the National Power Control Center (NPCC) during a public hearing here on the FCA on the request submitted by Discos for March 2025.

The NPCC has warned of the expected increase in electricity rates during the summer months due to the reduction of hydroelectric production and increased dependence on expensive fuels.

The Central Power Purchase Agency guaranteed limited (CPPA-G) requested a negative adjustment of 3 paisa per unit in FCA.

When combined with the 90 Paisa per unit previously approved for April, May and June 2025, the net negative impact will be 50 paisa per unit.

The Director General of the NPCC said that there will be no shortage in electricity production, the FCA will increase due to the use of more expensive fuels.

CPPA-G chief Rihan Akhtar supported the NPCC assessment concerning the expected increase in the FCA.

Arif Bilwani, a Karachi stakeholder, raised several questions about future government electricity production plans, the structure of the FCA and the arrangements taken by the agencies concerned.

Amir Sheikh, another speaker, underlined while captive electric power plants were forced to switch to National Grid, releasing indigenous gas and RLNG, in particular Sindh and Kpk, this gas was not allocated to IPPS or other sectors.

Consequently, he argued, the industry has received no advantage in the form of an increase in FPA reimbursements. He wondered where diverted gas is used, stressing that industry should benefit from it thanks to a higher FPA refund.

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