Business

Power tariff likely to go up as CPPA seeks fuel cost adjustment

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Web Desk

9 months ago

ISLAMABAD: Electricity consumers across the country may face higher bills in October after the Central Power Purchasing Agency-Guarantee (CPPA-G) approved an additional collection of Rs0.1911 per unit from consumers from the National Electric Power Regulatory Authority (Nepra).

The agency’s demand is under the monthly Fuel Charges Adjustment (FCA) for August 2025. Nepra has scheduled a public hearing on September 29 to decide the matter.

In its petition filed on behalf of former Wapda distribution companies (Discos) and K-Electric, the CPPA-G said that the reference fuel charges for August were Rs7.3149 per unit, while the actual cost of power generation was Rs7.5059 per unit on an average.

It argued that the difference should be recovered from consumers through the FCA mechanism. According to sources, if the request for increase is approved, it could impose an additional burden of Rs3 billion on consumers across the country.

As per federal policy guidelines, the FCA for ex-WAPDA DISCOs will also be applicable to K-Electric consumers, ensuring uniformity across distribution companies.

According to data provided by CPPA-G, total power generation in August was 14,218 gigawatt hours (GWh) at a cost of Rs103.4 billion or Rs7.27 per unit. After accounting for transmission losses, IPP sales and advance adjustments, net supply to DISCOs was 13,715 GWh at Rs7.51 per unit, from which an adjustment of Rs0.1911 per unit was requested.

Hydropower was the largest contributor, generating 5,517 GWh or about 39% of the total mix excluding fuel cost. Nuclear plants contributed 2,145 GWh (15%) at a minimum of Rs 2.19 per unit, while RLNG-based plants generated 2,180 GWh (15.3%) at Rs 21.73 per unit. Coal contributed 18% of the total, with local coal at Rs 12.01 per unit and imported coal at Rs 14.07.

Domestic gas contributed 7.3% at Rs 13.43, while expensive residual fuel oil contributed less than 1% at Rs 33.01 per unit. Imports from Iran, though only 78 GWh, command the highest price at Rs 41.09 per unit.

Web Desk