ISLAMABAD: The cost of electricity from gas-fired power plants has increased by Re1 per unit following a 17% hike in gas prices by the government, taking the rate from Rs1,050 to Rs1,225 per unit effective July 1.
At a public hearing conducted by the National Electric Power Regulatory Authority (Nepra), Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar explained that despite the increase, gas-based power generation remains more economical compared to imported coal and LNG-based alternatives.
Akhtar noted that the CPPA had initially requested a fuel cost adjustment (FCA) of Rs0.10 per unit for May, but the actual cost rose to Rs7.49 per unit—higher than the Rs7.39 reference, adding a burden of Rs1.25 billion.
He added that two major nuclear plants—Chashma-1 and Karachi Nuclear—were offline for refueling, affecting supply. However, consumers will benefit from a Rs1.43 per unit settlement with IPPs, with a net benefit of Rs0.50 per unit expected in July due to earlier overcharging in June.
Simplifying Power Bills
Power Minister Sardar Awais Leghari has urged provinces to eliminate the 1% electricity duty to simplify consumer billing. He proposed discontinuing its collection through electricity bills by July 2025 and advised provinces to explore alternative mechanisms for tax collection.
Regulatory Tensions
Nepra, K-Electric, and Karachi consumers criticized the Power Division for attempting to delay a Rs4.69 per unit negative FCA adjustment for KE consumers for April. Nepra officials denounced the move, citing the lack of legal and constitutional backing, and stressed the process must proceed.
KE CEO Moonis Alvi questioned the timing and fairness of a proposed uniform FCA policy, pointing out that KE consumers already pay higher adjustments. Nepra said it would review the matter legally before finalizing any decision.
Story by Khaleeq Kiani
