Electricity Tariff Likely to Increase in Pakistan

electricity tariff likely to increase in pakistan

electricity tariff likely to increase in pakistan

Recently, the National Electric Power Regulatory Authority (NEPRA) in Pakistan received a request from the Central Power Purchasing Agency (CPPA) to raise the electricity tariff by 55 paisas per unit. This might mean that the cost of electricity for households and businesses in Pakistan could go up again.

The reason for this request is related to the monthly fuel adjustment for September. The CPPA informed NEPRA that in September about 12.92 billion units of electricity were produced  and it cost around Rs7.61 per unit to generate this electricity. The reference cost for September was set at Rs7.7 per unit. This means that the actual cost was slightly less than the reference cost, but the CPPA still wants the tariff to be increased.

In September, the sources of electricity generation in Pakistan were quite diverse. A big portion, 37.55%, came from hydropower. While local coal and imported coal contributed 11.08% and 4.83%. Local gas accounted for 7.54%, and 15.95% of the electricity was generated from imported RLNG.

If NEPRA approves the tariff increase, it could result in an additional cost of Rs8.37 billion for electricity consumers. This might affect the budgets of many households and businesses.

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In addition to this tariff increase request, NEPRA also conducted a public hearing on K-Electric’s Power Acquisition Programme (PAP) for the years 2024 to 2030. This program aims to plan for the expansion of electricity capacity, which will ensure sustainable energy while promoting the use of renewable and indigenous resources.

Read More: Pakistan’s Rupee Depreciation and Its Struggle with Decreasing Dollar Inflows

As these changes are happening it’s important for the people of Pakistan to stay informed about potential changes in electricity tariffs and their impact on their daily lives and business.

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