Islamabad: Electricity consumers are bracing for another significant financial burden as the power tariff is poised to increase by Rs2.63 per unit. The proposed hike is attributed to the Fuel Charges Adjustment (FCA) for electricity consumed during June 2024.
The Central Power Purchasing Agency (CPPA), acting on behalf of distribution companies (DISCOs), has submitted an application to the National Electric Power Regulatory Authority (NEPRA) requesting a tariff increase of Rs2.6307 per kilowatt hour (kWh) under the FCA for June 2024.
According to the CPPA’s submission, the reference fuel charges collected from consumers for June were set at Rs7.1403 per unit, while the total actual cost per unit amounted to a higher Rs9.7710. The agency has attributed the difference to various factors, including the cost of energy production from different sources.
NEPRA has scheduled a public hearing on July 31, 2024, to discuss and review the application. The hearing will provide an opportunity for stakeholders to present their views on the proposed tariff hike.
Experts have expressed concerns that the proposed hike will further burden electricity consumers, who are already struggling to cope with the high cost of living. They have also alleged that DISCOs are exploiting individuals who have installed net metering, a renewable energy source.
The CPPA’s data reveals that the total electricity generated in June 2024 was 13,459 GWh, with hydropower contributing 35.13% and coal-fired power plants contributing 15.81%. The agency has also reported that the net electricity delivered to DISCOs in June 2024 was 13,071 GWh, representing 97.11% of the total generated power.