Consumers may soon face a huge increase in electricity costs, with rates expected to go up by Rs5 per unit for the month. This follows a request from the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (Nepra).
The proposed hike, concerning the monthly fuel adjustment for February, awaits deliberation during a Nepra hearing on March 28. If approved, it could burden consumers with over Rs40 billion in additional expenses.
Electricity consumption in February
According to CPPA data, February witnessed the sale of 6.876 billion units of electricity, sourced from various energy outlets. In February, a significant chunk of electricity—around 24.77%—came from water sources, highlighting the importance of hydropower. Additionally, local coal contributed 13.94%, while imported coal added 1.89%.
Furthermore, local gas and imported liquefied natural gas (LNG) accounted for 11.04% and 20.33% of electricity generation, respectively. Nuclear energy contributed 23.29% to February’s overall electricity generation.
In a related development, on March 17, the Sui Southern Gas Company (SSGC) urged the Oil and Gas Regulatory Authority (Ogra) for a significant gas price hike, effective July 1.
The proposal seeks a Rs324 per million British thermal units (mmbtu) increase, aiming for an average price of Rs1740.80 per mmbtu. If approved, this adjustment could impose a hefty burden of Rs79.63 billion on gas consumers nationwide.
SSGC justifies this request by citing a projected revenue shortfall of Rs79.63 billion for the upcoming fiscal year. This includes Rs56.69 billion from local gas sales, Rs22 billion from Re-gasified Liquefied Natural Gas (RLNG) transactions, and an estimated renovation shortfall of Rs935 million.
