NEPRA reserves decision on August adjustment

Electricity consumers could face an additional Rs1.73 per unit after the National Electric Power Regulatory Authority (NEPRA) concluded its hearing on the Central Power Purchasing Agency’s (CPPA) August fuel charges adjustment request. The regulator has reserved its decision and will issue a detailed ruling after reviewing the financial data and calculations presented during the hearing.

The proposed adjustment is close to the Rs1.7267 per unit requested by CPPA and could place an estimated Rs29.5 billion additional burden on consumers, including K-Electric customers. CPPA officials said Rs20.7142 billion of the amount is directly linked to payments to Independent Power Producers.

August power generation costs revealed

According to CPPA data, electricity generation in August reached 14.464 billion units, with an average generation cost of Rs8.82 per unit. Hydropower contributed 37.84% of total generation, while imported coal accounted for 15.59%, local coal 10.86%, LNG 8.48% and local gas 7.04%.

LNG-based generation was among the most expensive major sources, costing around Rs45.92 per unit. CPPA also presented adjustment claims involving several power projects, including Chashma Nuclear Power Plant C2, Tavanir Iran and Punjab Thermal Power.

The petition included reductions in earlier adjustments as well as a provisional Rs10.6168 billion adjustment for RLNG-fired power plants. NEPRA’s final decision will determine whether the proposed August fuel charges adjustment is passed on to consumers.