Electricity consumers across Pakistan may face another increase in their bills after the Central Power Purchasing Agency (CPPA) sought a Rs2.52 per unit hike.

The request has been submitted to the National Electric Power Regulatory Authority (NEPRA) under the July monthly fuel price adjustment. NEPRA is scheduled to review the request and assess the generation costs and other relevant figures.

If approved, the proposed adjustment could place an additional burden of around Rs29.5 billion on electricity consumers nationwide.

What is driving the proposed increase?

According to CPPA data, hydropower accounted for 39.81% of electricity generation during July. Imported coal contributed 14.34%, while local coal accounted for 10.91% and imported gas contributed 10.78%.

The figures show the impact of different fuel sources on electricity generation costs. Fuel price adjustments are used to recover differences between the reference costs included in electricity tariffs and the actual generation costs.

The latest request comes after several recent changes in electricity prices. NEPRA had already approved a 52-paisa per unit quarterly adjustment, adding around Rs12.67 billion to consumers’ bills. Electricity prices were also increased by 75 paisa per unit in August.

CPPA said distribution companies received 14.464 billion units of electricity in August, with the average supply cost recorded at Rs8.82 per unit.

The regulator will determine the final amount after examining CPPA’s request and supporting data. The proposed Rs2.52 increase will not be charged unless approved and notified by NEPRA.