ISLAMABAD: Consumers could face another financial hit as the base electricity tariff is expected to rise by Rs5 per unit for the fiscal year 2024-25.
The Central Power Purchasing Agency (CPPA) has submitted a forecast for power purchases for the fiscal year 2024-25. According to the CPPA’s petition, made on behalf of Distribution Companies (DISCOs), the total power purchase cost for the next fiscal year is projected to rise to Rs3.58 trillion, which is about Rs310 billion higher than the current cost of Rs3.28 trillion.
The CPPA-G’s report outlines seven scenarios for determining the consumer tariff for 2024-25, considering various factors such as demand growth (3% to 5%), exchange rates (rupee at 275 and 300), and normal and dry hydrological conditions.
According to the projection, electricity consumers will be affected by 2.40% of US inflation, 12.20% of domestic inflation, an interest charge of 21.37%, and 5.31% on electricity purchases, plus a market operator fee of Rs3.48 per unit.
Fuel costs are proposed to range from Rs8.61 to Rs9.34 per unit, and capacity charges are expected to be between Rs15.49 and Rs17.42 per unit for 2024-25. This is compared to the current fiscal year, where capacity payments make up 71% of the power purchase price (PPP) and energy costs constitute about 29%. For 2023-24, capacity charges were Rs16.22 per unit, and energy charges were Rs6.73 per unit.
The overall power purchase price is expected to range from Rs25.03 to Rs27.11 per unit for the next fiscal year, compared to the current year’s PPP of Rs22.95 per unit.
