Expected Increase in Electricity Tariff in Pakistan

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Concerns have been raised after the application for an increase in electricity tariff was submitted to the National Electric Power Regulatory Authority (NEPRA). This has added to the financial burden on consumers who are already struggling with rising utility costs.

The Central Power Purchasing Agency (CPPA) made the request for NEPRA’s approval for an increase in electricity tariff under the FCA of November 2023, on behalf of DISCOs. NEPRA is scheduled to hold a hearing on this matter on Jan 31.

The CPPA stated that 12.92 billion electric units were produced at a cost of Rs7.61/unit in September, while the reference cost for September was fixed at Rs7.7 per unit.

In its application, the CPPA reported that 7.41 billion electric units were generated in December.

Hydropower generation accounted for 24.03% of the total generation, with 16.95% generated from local coal and 4.97% from imported coal.

10.69% of the total power was produced from local gas, while 16.41% of power generation in Pakistan was made through imported RLNG.

Earlier on Jan 4, NEPRA increased the electricity tariff by Rs 4.12 per unit for its consumers under the fuel adjustment charges for the month of November 2023.

Meanwhile, consumers have to pay additional charges in January 2024, but the increase was not applied to Lifeline and KE consumers.

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