April Fuel Costs May Spark Electricity Bill Increase

Ali
By
Ali
2 Min Read
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Electricity consumers across Pakistan could face higher bills as the Central Power Purchasing Agency (CPPA) has formally requested a tariff increase of Rs1.25 per unit.

The request, submitted to the National Electric Power Regulatory Authority (NEPRA), relates to the monthly fuel price adjustment (FPA) for April.

In its application, the CPPA stated that 10.513 billion units of electricity were generated in April, with 10.196 billion units supplied to distribution companies.

Read More: K-Electric Proposes Significant Tariff Hike in Karachi

The reference fuel cost was set at Rs7.68 per unit, but the actual cost reached Rs8.94 per unit, prompting the agency to seek recovery of the difference from consumers.

NEPRA has scheduled a public hearing for May 29 to evaluate the request, during which stakeholders can raise concerns before a final decision is made.

The CPPA also provided a breakdown of April’s electricity generation sources. Hydropower contributed 21.94%, local coal 14.51%, imported coal 10.02%, and furnace oil less than 1%.

Read More: NEPRA to Review Petition for Electricity Tariff Reduction

Local gas accounted for 8.01%, while imported liquefied natural gas (LNG) made up 20.52%. Nuclear energy produced 17.91% of the total electricity.

Officials noted that increased reliance on costly imported fuels, especially LNG, was a key factor behind the rise in production expenses.

If approved, the proposed tariff hike will add to the financial strain on consumers, many of whom are already struggling with rising inflation and energy costs.

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