ISLAMABAD: Electricity prices are likely to increase across the country, including Karachi, after the National Electric Power Regulatory Authority (NEPRA) concluded a public hearing on a petition seeking a Rs1.78 per unit hike under the monthly fuel cost adjustment (FCA) mechanism. The regulator reserved its decision, which will be announced later.
The request was filed by the Central Power Purchasing Agency (CPPA) for the January adjustment, citing higher generation costs. During the hearing, officials informed that 8.76 billion units of electricity were sold in January. The estimated fuel cost was Rs10.39 per unit, while the actual cost reached Rs12.17 per unit.
CPPA officials attributed the increase to lower hydropower generation and higher electricity consumption, which necessitated the use of more expensive furnace oil-based power plants to meet peak demand.
During the proceedings, NEPRA Member Punjab Amna Ahmad expressed concern over rising electricity prices, stating that improvements had been expected but the situation appeared to be moving in the opposite direction. She questioned why furnace oil plants were operated during January.
Officials responded that the plants were run to meet increased peak demand. NEPRA Member Maqsood Anwar observed that the requested increase was primarily driven by the use of furnace oil for power generation.
According to the petition, the proposed increase would also apply to consumers of K-Electric under the government’s policy guidelines, if approved.