CPPA requests hike in electricity rates by Rs2.63 per unit

ISLAMABAD: Electricity prices are expected to rise by Rs2.63 per unit for consumers, following a request by the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (NEPRA).

This proposed increase aims to adjust for monthly fuel costs. Government-owned distribution companies have already been implementing higher rates, and this adjustment will further impact consumers. The CPPA has attributed the need for this hike to monthly fuel cost adjustments (FCA).

NEPRA is set to review the CPPA’s request before deciding on the matter. If approved, the revised rates will be effective for one month, putting an additional burden on the budgets of households and businesses.

This decision comes amid ongoing economic difficulties, with rising fuel prices significantly affecting electricity production costs.

Consumers should prepare for increased bills in the coming months as NEPRA assesses the proposal. However, the power division officials have stated that there will be no increase in electricity prices, and the bills will be lower compared to June.

The request application states that 35.13% of electricity was generated from water, 11.06% from local coal, 1.95% from fuel oil, and 8.66% from local gas.

Moreover, Electricity generated from imported LNG accounted for 18.10%, while 14.85% was generated from nuclear fuel.

Previously, NEPRA had deferred its decision on K-Electric’s application to raise electricity rates in Karachi by Rs5.45 per unit, which was requested under the Fuel Price Adjustment (FCA) mechanism for May and June.