ISLAMABAD – Electricity consumers may face an increase of 26 paisa per unit under the monthly fuel adjustment mechanism for March. The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (Nepra) seeking approval for the price hike. Nepra is scheduled to hear the petition on April 28.
According to CPPA data, a total of 8.939 billion units of electricity were generated in March, out of which 8.644 billion units were supplied to distribution companies (DISCOs). The reference fuel cost for March was set at Rs7.99 per unit.
Generation Mix
The generation mix shows that 23.55% of electricity was produced from hydel sources, while 16.76% came from local coal. Electricity generated from imported coal accounted for 13.80%, while 5.64% was produced using imported LNG.
Furnace oil contributed 1.02% to the overall generation, whereas local gas accounted for 11.34%. Nuclear fuel remained a significant contributor, generating 21.95% of electricity during the month. Renewable sources also played a role, with wind energy contributing 3.46% and solar energy 1.18% to the total generation.
Impact on Consumers
Officials said that if approved, the increase in electricity prices would also apply to K-Electric consumers. The 26 paisa per unit increase, while modest, will add to the burden on consumers already facing high inflation and elevated fuel prices.
Context
The proposed increase comes amid a broader energy crisis triggered by the Middle East conflict. The closure of the Strait of Hormuz disrupted LNG imports, and global oil prices surged. While a ceasefire is now in place and the strait has reopened, the impact on energy prices will take time to reverse.
Analysis: A Modest but Symbolic Increase
The proposed 26 paisa per unit increase is modest compared to previous fuel adjustments. However, it is symbolic of the ongoing pressure on Pakistan’s energy sector. The generation mix reflects the country’s dependence on imported fuels — coal, LNG, and oil — all of which have been affected by the global energy crisis.
The significant contribution of nuclear power (21.95%) and hydel (23.55%) has helped mitigate the impact. Without these sources, the increase would likely have been higher.
Nepra’s hearing on April 28 will determine whether the increase is approved. For consumers, the modest increase is manageable, but it is yet another addition to the cost of living.
