ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has reserved its decision on a proposed Rs2.56 per unit increase in electricity prices under the monthly Fuel Charges Adjustment (FCA) for September, a move that would also affect K-Electric consumers under government policy guidelines.
Thank you for reading this post, don't forget to subscribe!NEPRA completed a public hearing on a petition filed by the Central Power Purchasing Agency-Guarantee (CPPA-G), with officials attributing the proposed increase primarily to higher international fuel prices and expensive imported energy supplies.
During the hearing, officials said spot liquefied natural gas (LNG) cargoes were available at approximately $27.33, contributing to higher electricity generation costs.
According to CPPA-G, the average fuel cost of electricity generation increased to Rs10.02 per unit in September, compared with the reference cost of Rs7.46 per unit. Total power generation expenditure during the month reached Rs127.87 billion.
Imported coal accounted for the largest share of generation costs at Rs37.14 billion, followed by regasified liquefied natural gas (RLNG) at Rs31.93 billion. Other major fuel expenses included local gas at Rs13.89 billion, diesel at Rs13.26 billion, furnace oil at Rs11.81 billion and local coal at Rs7.95 billion.
The hearing also highlighted an increase in nationwide electricity consumption. Total demand reached 10,549 gigawatt-hours (GWh) in September, representing an increase of 645GWh, or approximately 6.5 per cent, compared with 9,904GWh during the corresponding month last year.
Residential electricity consumption increased by 8.4 per cent to 5,810GWh, while industrial consumption rose 6.7 per cent to 2,597GWh. Commercial consumption grew by 3.2 per cent, general services by 3 per cent and bulk consumers by 1 per cent.
Agricultural consumption was the only major category to register a decline, falling 6.7 per cent to 376GWh. Consumption across other sectors increased by 7.3 per cent. Distribution companies collectively sold 12.76 billion units of electricity during September.
The proceedings also brought attention to shortages in RLNG supplies to power plants, which affected the availability of fuel for electricity generation.
The power sector’s daily RLNG requirement stood at 350 million cubic feet per day (MMCFD), while Sui Northern Gas Pipelines Limited (SNGPL) supplied 218MMCFD. Actual consumption was recorded at 194MMCFD, equivalent to approximately 90 per cent of the allocated supply.
Plant-level data revealed considerable differences between RLNG requirements and allocations. Haveli Bahadur Shah power plant required 78MMCFD but received only 10.7MMCFD, while Bhikki power plant’s demand stood at 130MMCFD against an allocation of 51.8MMCFD.
In contrast, the Balu Ki power plant, which also required 130MMCFD, received an allocation of 129.2MMCFD.
During September, Haveli Bahadur Shah generated 29.92GWh of electricity using RLNG, while Bhikki and Balu Ki generated 229GWh and 506GWh, respectively.
NEPRA will announce its decision on the CPPA-G petition separately. The proposed adjustment, if approved, will be reflected in electricity bills in accordance with the applicable regulatory and government policy framework.
