CPPA Seeks Additional Recovery Through June Billing Cycle
Electricity consumers across Pakistan may face higher power bills next month as authorities consider a fuel cost adjustment that could increase tariffs by around Rs1.74 per unit.
The National Electric Power Regulatory Authority (Nepra) held a public hearing on a request submitted by the Central Power Purchasing Agency (CPPA) seeking more than Rs16 billion in additional recoveries from consumers.
According to CPPA officials, the reference fuel cost for April was set at Rs8.25 per unit. However, the actual fuel cost reached Rs9.975 per unit, creating a gap that regulators are now considering passing on to consumers through June bills.
Officials attributed the increase primarily to disruptions in liquefied natural gas (LNG) supplies during the US-Iran conflict, which pushed generation costs higher. Consequently, the proposed fuel cost adjustment stands at Rs1.73 per unit, while the net impact on consumers could reach Rs1.74 per unit after the expiry of an existing negative adjustment.
CPPA representatives said government measures, including load management and reduced reliance on furnace oil and diesel-based generation, helped limit the overall increase.
Karachi Loadshedding Concerns Also Come Under Scrutiny
During the hearing, officials also highlighted operational challenges that contributed to higher generation costs. Technical limitations prevented the efficient transfer of cheaper electricity generated in Sindh to demand centers in other parts of the country, increasing reliance on more expensive sources.
Additionally, lower availability of the Karachi Nuclear Power Plant Unit-2 (K-2) due to technical issues and reactor-related outages also affected generation costs. Officials noted that past claims associated with the plant further contributed to the adjustment request.
Meanwhile, Nepra raised concerns over excessive loadshedding in Karachi amid rising temperatures. The regulator reported receiving a growing number of complaints from both low-loss and high-loss areas regarding unscheduled power cuts.
Regulatory officials questioned K-Electric’s adherence to approved loadshedding schedules and sought a detailed report on the situation. They also expressed concern that outages caused by technical faults were not being properly accounted for under load management plans.
K-Electric officials assured regulators that a detailed response would be submitted. In a statement issued after the hearing, the utility maintained that its loadshedding practices comply with the National Electricity Policy and attributed some localized outages to ongoing development work and infrastructure projects across the city.
The proposed adjustment remains subject to Nepra’s final approval before implementation in upcoming electricity bills.
