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Power Companies Propose Rs2.48 Per Unit Increase in Rates

Power Companies

ISLAMABAD: Power distribution companies are proposing a tariff increase of up to Rs2.48 per unit, potentially burdening electricity consumers with additional charges.

The proposal, submitted to the National Electric Power Regulatory Authority (NEPRA) by the Central Power Purchasing Agency (CPPA) on behalf of XWDiscos, seeks permission to collect an extra Rs3.488 per unit from consumers as part of the fuel charges adjustment (FCA) for April 2024. NEPRA has scheduled a public hearing for May 30, 2024, to address this matter.

According to data presented to NEPRA, 8,639 GWh of electricity was generated in April 2024, costing Rs79.55 billion, or Rs9.208 per unit.

However, after a backward adjustment of Rs3.06 billion, the total cost decreased to Rs75.2 billion, or Rs8.98 per unit.

Power generation from local coal increased by 2.2 percent, while generation from imported coal rose to 21 GWh from zero in the previous month.

In April 2024, renewable and cost-effective electricity production decreased compared to the previous month, potentially leading to higher costs for consumers.

The CPPA argues that the additional cost burden of Rs3.4883 per unit should be passed on to consumers due to the disparity between the reference fuel cost and the actual incurred cost.

Meanwhile, K-Electric (KE) has received approval from NEPRA for its Power Acquisition Programme (PAP) for the period FY 2024-2028.

This approval aligns with KE’s strategy to improve power supply reliability and sustainability in Karachi, focusing on integrating renewable energy sources like solar and wind projects.

KE aims to add 1,282 MW of renewable energy capacity by 2030, including a significant solar PV project and a hybrid plant near the Dhabeji Grid Station, contributing to Karachi’s energy mix and promoting sustainability.

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