Rs 33 billion extra burden on electricity bills in fuel charge adjustment
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The caretaker government has initiated preparations to impose an additional financial burden of Rs33 billion on electricity consumers, as there are expectations that the electricity tariff will rise by Rs1.83 due to fuel charge adjustment (FCA).
The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) concerning the FCA for August. NEPRA is set to make a decision following a hearing scheduled for September 27.
During August, the power distribution companies received Rs15.47 billion units, as indicated by CPPA's data. Of note, 4.07% of the electricity was generated using costly furnace oil, incurring a cost of Rs33.32 per unit. Additionally, 7.6% of electricity came from gas, 17.17% from imported LNG, 10.26% from coal, 4.51% from imported coal, and 12.79% from nuclear fuel. Consequently, the total cost of electricity generation in August stood at Rs8.47 per unit, surpassing the reference cost of Rs6.64 per unit.
Earlier in the month, the resolute protests by the people of Azad Jammu and Kashmir (AJK) bore fruit as the government reversed its decision to raise electricity tariffs. AJK residents launched a vigorous campaign against the tariff hike, marked by shutter-down strikes and demonstrations, ultimately prompting the government's policy reversal
