Electricity bills may rise sharply during three winter months in Pakistan

According to sources in the Power Division, electricity consumers across the country could face higher monthly charges during these three winter months. The expected increase may put further pressure on households already struggling with high energy costs.

Rising international fuel prices

The possible increase is linked to higher international prices of liquefied natural gas (LNG), coal and other fuels used to produce electricity. When these fuels become more expensive, power generation costs also rise, which can lead to higher electricity bills.

Sources say the rising cost of imported fuels could result in significantly higher fuel price adjustments. These adjustments are added to electricity bills and can increase the amount consumers have to pay.

Shortage of local gas supply

Another major reason behind the expected increase is the shortage of locally available natural gas during winter. As temperatures fall, household demand for gas increases, and domestic supplies are given priority for residential use.

This leaves power plants with less locally available gas to generate electricity. As a result, electricity producers may have to depend more on imported LNG and coal, which are generally more expensive.

Lower hydropower generation

Hydropower production also usually decreases during winter, reducing the supply of relatively cheaper electricity. This means the country may have to rely more on power plants that use costly imported fuels to meet electricity demand.

The combination of lower hydropower generation, limited local gas supplies and expensive imported fuels could increase the overall cost of electricity production. These additional costs may eventually be passed on to consumers through monthly fuel price adjustments.

Previous efforts to control electricity costs

Sources said authorities had taken steps in recent months to control electricity generation costs and reduce the burden of expensive fuel. These measures reportedly included load management of up to two hours to manage power generation expenses.

However, rising international fuel prices and limited domestic gas supplies could make it difficult to keep electricity costs at their current levels. The actual increase in electricity bills will depend on international fuel prices, power generation costs and decisions by the relevant regulatory authorities.

Pakistan’s electricity consumers could face another difficult winter if fuel prices continue to rise. Lower hydropower production and limited local gas supplies may increase dependence on expensive imported fuels.

If these conditions continue, monthly electricity bills could become even more expensive from December to February. However, the final impact will depend on actual fuel costs and official adjustments.

Also read: Electricity prices rise as consumers face Rs19 billion additional burden