Electricity prices likely to decrease further in Pakistan

ISLAMABAD: In a major relief for electricity consumers in Pakistan, electricity prices are likely to be reduced by Rs2 per unit, here on Thursday.

According to the proposal submitted by electricity distribution companies to the National Electric Power Regulatory Authority (Nepra), the reduction is part of the January quarterly adjustment and is expected to provide relief to consumers across the country.

The Central Power Purchasing Agency (CPPA) has requested the price reduction under the monthly fuel adjustment mechanism.

According to the CPPA, the cost of electricity generation in January was Rs10.78 per unit, while the reference fuel price was Rs13.01 per unit.

In January, the power generation mix consisted of 10.63% hydel, 15.56% coal, 8.53% imported coal, 1.35% furnace oil, 13.11% local gas, 18.92% imported LNG and 26.61% nuclear fuel. NEPRA will hear the CPPA petition today.

Earlier this month, Prime Minister (PM) Shehbaz Sharif had said that electricity rates for domestic consumers and industries would be further reduced through reforms in the power sector.

While chairing a review meeting of the sector in Islamabad on Friday, he expressed satisfaction over the ongoing changes in the power sector and said that they were yielding excellent results.

Prime Minister Shehbaz said that he had promised to guarantee affordable and sustainable power supply. He said that the revision of contracts with IPPs was saving the national exchequer and reducing electricity prices for consumers.

The Prime Minister referred to the campaign against power theft and promised to intensify it further so that the losses incurred by all distribution firms in the area could be completely eliminated.