ISLAMABAD: Electricity consumers might face an increase in their bills as power distribution companies have proposed a tariff hike of up to Rs2.48 per unit. They have asked the National Electric Power Regulatory Authority (NEPRA) for permission to collect an additional Rs3.488 per unit from consumers to cover fuel charges for April 2024.
The Central Power Purchasing Agency (CPPA) submitted this request on behalf of XWDiscos, and NEPRA has scheduled a public hearing for May 30, 2024, to discuss the proposal.
In April 2024, 8,639 GWh of electricity was generated at a cost of Rs9.208 per unit. Of this, 8,375 GWh was delivered to distribution companies, factoring in a 2.73% transmission loss. After adjusting for a Rs3.06 billion repayment to consumers, the cost per unit drops slightly.
Notably, local coal power generation increased, while imported coal saw a small contribution. However, the use of renewable and cost-effective energy sources was lower than in the previous month, which could have reduced costs further for consumers.
The petition highlights that the reference fuel cost for consumers was Rs5.4918 per unit, but the actual cost was Rs8.9801 per unit. The CPPA argues that the additional Rs3.4883 per unit should be passed on to consumers.
Power generation in April 2024 decreased by 13.7% compared to the previous year but increased by 7.7% from March 2024. Costs per unit dropped year-over-year but rose compared to the previous month.
Hydropower generation increased, while coal-based and natural gas-based generation decreased. Nuclear power generation saw a slight increase.
Meanwhile, K-Electric has received approval from NEPRA for its Power Acquisition Programme (PAP) for 2024-2028, focusing on integrating renewable energy, local fuels, and power from the National Grid to enhance power supply reliability and sustainability in Karachi. KE plans to add 1,282 MW of renewable energy, including significant solar and wind projects, by 2030, which will contribute to a more sustainable and lower carbon energy mix for the city.
