Despite a recent increase in electricity tariffs, Pakistani consumers may face further rate hikes next month. The country's power distribution companies have sought an additional Rs1.83 per unit fuel cost adjustment (FCA) from the National Electric Power Regulatory Authority (Nepra), which would add Rs30 billion to monthly electricity bills.
The request comes even though hydropower, which has no fuel cost, accounted for nearly 38% of Pakistan's total power generation in August. The second-largest source of power generation was LNG, followed by nuclear power.
The CPPA, which represents the power distribution companies, argued that the actual fuel cost in August was Rs8.47 per unit, compared to the reference fuel cost of Rs6.65 per unit. The CPPA has therefore requested Nepra to approve an additional Rs1.83 per unit FCA.
If approved by Nepra, the FCA increase will be applicable to all consumer categories except lifeline power consumers, protected domestic users consuming up to 300 units, agricultural consumers, and electric vehicle charging stations (EVCS). Domestic consumers with Time of Use (ToU) meters will also be subject to the FCA adjustment, regardless of their consumption level.
The FCA increase is likely to burden Pakistani consumers, who are already facing a high cost of living. The government has urged Nepra to carefully consider the CPPA's request and to ensure that any increase in tariffs is justified and does not unduly burden consumers.
