CCPA proposal seeks increase in per unit electricity price

ISLAMABAD: The Central Power Purchasing Agency has submitted a request for an increase in electricity prices for the entire country, including Karachi, in which it has been proposed to increase the cost of electricity per unit as part of the March fuel price adjustment.

The hearing on the request is expected later this month. According to the request submitted in Islamabad, the Central Power Purchasing Agency has requested an increase in the price of electricity by 27 paisa per unit, which has been made under the March fuel price adjustment. The request will be heard on April 28.

According to media reports, a total of 8 billion 939 million units of electricity were generated during March, while 8 billion 644 million units of electricity were supplied to the discos. The estimated cost of fuel per unit for this period was fixed at Rs 7.99 paisa; however, the actual cost increased to Rs 8.26 paisa per unit.

The application also provides details of the sources of electricity generation, according to which 23.55 percent of electricity was generated from hydro and 16.76 percent from local coal. Similarly, 13.80 percent of electricity was generated from imported coal and 5.64 percent from imported LNG.

It has been further stated that 11.34 percent of electricity was generated from local gas, 1.02 percent from furnace oil, and 21.95 percent from nuclear fuel. Among renewable energy sources, 3.46 percent of electricity was generated from wind and 1.18 percent from solar.

The Central Power Purchasing Agency believes that price adjustment is inevitable due to the increase in fuel costs, which will be applied to consumers after its approval.