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The government wants permission from NEPRA to add Rs. 2.94 per unit to the May electricity bills to cover extra fuel costs.
This proposed increase is much higher than the Rs. 6.44 per unit fuel cost set for March. NEPRA will decide on this after a public meeting on April 26, as per a national newspaper.
Lately, there have been extra fuel cost adjustments, ranging from 50 to 115 percent higher than the initial estimates at the beginning of the fiscal year 2024.
This additional charge adds to a 26 percent rise in the annual base tariff and a 10 percent increase every three months.
The higher fuel cost for March is mainly because of more expensive domestic coal and gas, even though no imported fuels like coal, diesel, and furnace oil were used. LNG stayed cheaper, and the exchange rate remained steady.
According to the CPPA, the actual fuel cost for March was Rs. 9.38 per unit, compared to the expected Rs. 6.44 per unit.
CPPA-G, representing ex-WAPDA DISCOs (XW Discos), has requested NEPRA’s approval for this tariff hike. If approved, consumers might have to pay over Rs. 30 billion more in May bills due to March’s fuel cost adjustment.
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Power generation decreased by 8.2 percent YoY to 8,023 GWh (10,784 MW) in March 2024 compared to the same month last year. In the first nine months of fiscal year 2024, power generation fell by 1.2 percent YoY to 92,450 GWh (14,008 MW) compared to the same period in the previous fiscal year.
In March 2024, actual power generation was 10.4 percent lower than expected. Arif Habib Limited predicts this drop will lead to higher capacity charges for the 4QFY24 QTA.