Electricity consumers across the country, including Karachi, are likely to see a 27 paise per unit increase in monthly fuel adjustment.
The Central Power Purchasing Agency (CPPA) had filed a request to increase electricity prices by 27 paise per unit in the monthly fuel adjustment for March, on which the National Electric Power Regulatory Authority (Nepra) completed its hearing today.
Nepra said that it will review the statistics and issue a decision. The increase will apply to all consumers, including K-Electric.
Important points related to the power sector emerged during the hearing held at the National Electric Power Regulatory Authority (Nepra).
According to officials, the RLNG agreements with Qatar are on a “take and pay” basis, meaning that even if the gas is not used, payment has to be made. Regarding local gas, it was reported that there was about 150 mmfcd surplus gas which was being used in various sectors, while more details can be provided by the Petroleum Division.
Officials clarified that the news regarding the increase in the basic tariff is baseless and no decision in this regard is expected before January 2027.
In March, the average cost of electricity was about Rs 8.26 per unit, while the reference cost was Rs 7.99. The share of water in electricity generation was about 18 percent, while production from RLNG also saw a decline.
Officials said that if this load shedding is not done, the circular debt could increase by Rs 400 to 500 billion.
Moreover, K-Electric is being supplied with about 2,000 MW of electricity from the national grid, which helped in stabilizing the national grid and reducing fuel adjustments.
According to the report, 8.93 billion units of electricity were generated in March, while 8.64 billion units were provided to the DISCOs, and the reference cost for this month was set at Rs 7.99 per unit.
The report said that the share of water in electricity generation was 23.55 percent, nuclear fuel 21.95 percent, and local coal 16.76 percent.
In addition, imported coal accounted for 13.80 percent, local gas for 11.34 percent, LNG for 5.64 percent, wind for 3.46 percent, solar for 1.18 percent and furnace oil for 1.02 percent.
If this increase is approved, it will apply to all consumers, including K-Electric.