Electricity Price Hike: CPPA Seeks Rs1.19 Per Unit Increase

The electricity price hike proposal could raise power bills across Pakistan after the Central Power Purchasing Agency (CPPA) asked the National Electric Power Regulatory Authority (NEPRA) to increase tariffs by Rs1.19 per unit. The request falls under the monthly fuel charges adjustment (FCA) for June. If approved, the revised rate will apply to electricity consumers across the country.
According to the petition, the proposed increase reflects higher fuel costs for electricity generation during June. NEPRA has scheduled a public hearing on 29 July before making its final decision. Therefore, consumers will have to wait for the regulator’s verdict.

Higher fuel costs drive the proposal

The CPPA reported that power plants generated 13.431 billion units of electricity during June. More than 13 billion units reached power distribution companies. The agency said the average generation cost stood at Rs8.91 per unit, compared with the reference fuel cost of Rs7.71 per unit. As a result, it requested the Rs1.19 per unit adjustment.
Hydropower remained the largest source of electricity generation during June. It contributed 39.03% of total output. Local coal produced 10.11%, while imported coal accounted for 12.65%. Furnace oil supplied only 0.74% of the electricity generated.

NEPRA to announce final decision

The generation mix also included 6.45% from local gas and 11.02% from imported LNG. Nuclear power contributed 13.40%, while wind and solar generated 5.03% and 0.82%, respectively.
After reviewing the petition and hearing stakeholders, NEPRA will decide whether to approve the requested increase. Earlier this month, the regulator approved a Rs0.34 per unit increase under the May fuel charges adjustment. The additional charges appeared in July electricity bills for consumers of all distribution companies, including K-Electric. The latest decision could further affect household and business electricity costs.