The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of Rs2.52 per unit in electricity prices for consumers across Pakistan.

The request has been filed under the July fuel price adjustment mechanism and could increase electricity bills if approved by the regulator.

According to NEPRA, the proposed adjustment reflects changes in the cost of electricity generation from different fuel sources during July.

LNG and furnace oil costs

The CPPA said electricity generated from imported liquefied natural gas (LNG) accounted for 10.78% of total generation during July.

Around Rs77.19 billion worth of electricity was generated using LNG, with the cost reaching Rs47.37 per unit.

Furnace oil accounted for another 1.42% of electricity generation. The cost of electricity produced from furnace oil stood at Rs50.07 per unit, while generation from the fuel was valued at around Rs10.77 billion.

Water and coal generation

Hydropower remained the largest source of electricity generation during the month, contributing 39.81% of total generation.

Local coal accounted for 10.91%, while imported coal contributed 14.38%.

Nuclear power plants generated 10.10% of the electricity produced in July. The fuel cost of nuclear generation remained significantly lower at Rs3.02 per unit.

Diesel generation adds to costs

The CPPA also reported electricity generation from diesel during July.

Around 31 million units were generated using diesel, with the cost reaching Rs54.47 per unit, making it one of the more expensive generation sources during the month.

NEPRA hearing on August 27

NEPRA has scheduled a hearing on the CPPA’s request for August 27.

If the regulator approves the proposed adjustment, consumers could face an additional financial burden of around Rs41 billion, including GST.

The final increase will depend on NEPRA’s assessment of the generation data, fuel costs and other relevant factors before a decision is announced.