Electricity Tariff Hike Looms: CPPA Seeks Rs4.66 per Unit Increase

The Central Power Purchasing Agency (CPPA) has taken a Step toward another increase in Electricity Tariffs by filing an application with the National Electric Power Regulatory Authority (NEPRA). In this Request the CPPA Representing Power distribution Companies (DISCOs) Seeks an increase of Rs4.66 per unit under the Fuel Charges Adjustment (FCA) for November 2023. The Hearing on this matter is Scheduled for December 27.
If NEPRA approves the Request, it would Place an additional financial Burden of Rs40 Billion on Power consumers. The CPPA’s application notes that in February 2023, a total of 7.22 Billion units of Electricity were Generated using various fuels, with a basket price of Rs9.44 per unit.
The breakdown of Electricity generation sources in November indicates that 36.50% came from Hydropower, 13.8% from local Coal, 6.44% from imported Coal, 9.21% from local Gas, 10.57% from imported LNG and 20.83% from Nuclear Fuel.


Read More: Electricity Prices Expected to Surge by Rs3.53 per Unit in Pakistan


This Proposed increase follows a recent Request by the Federal Government for a Rs1.72 per unit hike in Electricity Tariffs Specifically for K-Electric Consumers. The request was based on adjustments for the second and third Quarters of the Previous year. The Government stated that the increase was Necessary to maintain a uniform tariff across the Country. The breakdown included a Rs0.25 per unit Raise for the January-March 2023 adjustment and a Rs0.47 per unit increase for the October-December 2022 adjustment.

Read More: Discos Apply for a Rs1.829 per Unit Increase in Electricity Prices


These developments raise concerns about the Potential impact on Consumers and the broader Economic landscape, as the Cost of electricity plays a significant role in household and industrial Budgets.