Electricity price increase Pakistan likely as Nepra electricity tariff hearing begins

If approved, electricity bills Pakistan may increase for consumers across the country, including Karachi.

CPPA seeks another tariff increase

The Central Power Purchasing Agency (CPPA) has submitted a request to increase the Nepra electricity tariff by 82 paisas per unit under the monthly CPPA fuel price adjustment for May.

Nepra will hold a public hearing tomorrow to review the request before announcing its final decision.

Why is the increase being requested?

According to the CPPA, the proposed electricity price increase Pakistan is based on higher fuel costs recorded during May.

Officials said Pakistan generated 12,638,000,000 units of electricity during the month. The actual fuel cost reached Rs9.25 per unit, while the approved reference fuel cost was Rs8.43 per unit.

Because of this difference, the CPPA fuel price adjustment has been requested.

Consumers could face higher electricity bills

If Nepra approves the request, electricity bills Pakistan could increase by around Rs12,000,000,000 in total.

The revised amount would likely be recovered through upcoming monthly electricity bills, adding another burden on households and businesses already dealing with rising living costs.

The final Nepra electricity tariff decision will determine whether consumers have to pay the additional charges.

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Breakdown of power generation

Official figures show that 33.27 percent of electricity was generated through hydropower in May.

Another 11.66 percent came from local coal, 13.54 percent from imported coal, 0.16 percent from furnace oil, and 8.31 percent from local natural gas.

These generation costs are reviewed every month under the CPPA fuel price adjustment mechanism before any Nepra electricity tariff revision is approved.

Nepra to announce final decision

Nepra will carefully review the data submitted by the CPPA, including production costs, fuel consumption, and the likely impact on consumers.

If the authority approves the request, the electricity price increase Pakistan will be reflected in future electricity bills Pakistan.