Electricity Bills May Rise Again as 82 Paisa Per Unit Hike Proposed Across Pakistan

Pakistan’s electricity consumers may soon face another increase in power tariffs as a request has been submitted to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of 82 paisa per unit in electricity prices across the country.

The Central Power Purchasing Agency (CPPA) submitted the request through the Fuel Price Adjustment (FPA) mechanism for the month of May. The average fuel cost of electricity generation during May was Rs9.25 per unit, while the reference fuel cost was estimated at Rs8.43 per unit, according to the application.

CPPA has requested NEPRA to allow the price hike of 82 paisa per unit for electricity consumers across the country because the cost of fuel in the country is higher than estimated.

NEPRA has scheduled a public hearing on the request for June 30, after which the regulator will decide whether the proposed increase should be passed on to consumers.

If the request is granted, electricity consumers may have to pay a financial toll of about Rs12 billion, sources said. The proposed hike arrives as many homes and businesses are facing higher utility bills and inflation.

The Fuel Price Adjustment mechanism enables the power companies to recover the difference in the cost of fuel used in electricity generation. If an adjustment is approved, it is added to consumers’ electricity bills for a defined timeframe.

Now the decision of NEPRA is awaited by consumers across Pakistan, which may affect their electric bills in coming months if the desired tariff hike is allowed.