ISLAMABAD: Electricity tariffs for January 2025 will slightly increase compared to December 2024, even as fuel costs decline. The adjustment stems from early tariff rebasing and changes to peak and off-peak timings, according to the National Electric Power Regulatory Authority (Nepra).
At a public hearing led by Nepra Chairman Waseem Mukhtar, the Central Power Purchasing Agency (CPPA) proposed a negative fuel cost adjustment (FCA) of 63 paise per unit for November. This replaces the Rs1.14 per unit negative FCA from December, resulting in a net increase of 51 paise per kWh for January consumers.
Nepra officials criticized inefficiencies in power companies, citing an eight-month delay in the Lahore-North grid and underutilization of the Matiari-Lahore Transmission Line, operating at just 20% capacity in November. Consumers are charged for full capacity despite low utilization.
The CPPA reported partial load adjustment charges of Rs47 billion in 2023 and Rs56 billion in 2024, attributed to changing demand patterns and solar adoption. Nepra called for an inquiry into transmission delays and a study on demand fluctuations.
The regulator also raised concerns about coal-based power plants receiving excessive working capital allowances and urged the Sindh Coal Authority to expedite the Thar Coal Mine expansion to enhance local coal usage. Railway issues for coal transport were highlighted as a hurdle in reducing tariffs.
Despite these challenges, domestic fuel sources accounted for 82.3% of November’s power supply, with nearly half at zero fuel cost. Hydropower led the supply at 35.61%, followed by nuclear power (20.61%), local coal (12.68%), and RLNG (11.29%).
Electricity demand rose 6.34% in November due to unseasonably warm weather, though consumption over five months fell 4%. The CPPA claimed an average fuel cost of Rs7.23 per unit in November, lower than the Rs9.44 per unit in the same period last year, allowing for a 63-paise refund per unit.
Story by Khaleeq Kiani
