Islamabad. Electricity tariff in Pakistan is likely to increase by 48 paisa per unit for one month under the monthly fuel cost adjustment mechanism. The Central Power Purchasing Agency CPPA has submitted a petition to the National Electric Power Regulatory Authority NEPRA seeking approval for this adjustment. NEPRA is scheduled to hear the petition soon.
Electricity Generation and Supply Data
According to CPPA a total of 8.487 billion units of electricity were generated in December. Out of this 8.208 billion units were supplied to distribution companies. The average per unit cost of electricity during the month stood at Rs9.62.
During December 18.07% of electricity was generated from hydel sources. Local coal contributed 13.99% imported coal 10.13% and natural gas based generation was 11.20%. Imported LNG accounted for 17.24% while nuclear sources contributed 25.05% of total generation.
Government Relief Measures
Earlier this month the federal cabinet approved a decision of the Economic Coordination Committee to provide relief to consumers of electricity distribution companies regarding the Off Grid Captive Power Plant Levy. The decision was taken during a cabinet meeting chaired by Prime Minister Shehbaz Sharif.
Economic Context
Addressing the cabinet meeting the Prime Minister said that the country s GDP recorded encouraging growth in the first quarter of the current fiscal year from July to September. He added that the government has steered the economy away from the brink of default towards stability.
What This Means for Consumers
If NEPRA approves the petition consumers may see a temporary increase of 48 paisa per unit in their electricity bills for one month. This adjustment is part of the fuel cost adjustment mechanism which allows power producers to recover increased costs of fuel and electricity generation.
