Rs 33 billion extra burden on electricity bills in fuel charge adjustment

Rs 33 billion extra burden on electricity bills in fuel charge adjustment

The caretaker government has initiated preparations to impose an additionalfinancial burden of Rs33 billion on electricity consumers, as there areexpectations that the electricity tariff will rise by Rs1.83 due to fuelcharge adjustment (FCA).

The Central Power Purchasing Agency (CPPA) has submitted a request to theNational Electric Power Regulatory Authority (NEPRA) concerning the FCA forAugust. NEPRA is set to make a decision following a hearing scheduled forSeptember 27.

During August, the power distribution companies received Rs15.47 billionunits, as indicated by CPPA’s data. Of note, 4.07% of the electricity wasgenerated 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 atRs8.47 per unit, surpassing the reference cost of Rs6.64 per unit.

Earlier in the month, the resolute protests by the people of Azad Jammu andKashmir (AJK) bore fruit as the government reversed its decision to raiseelectricity tariffs. AJK residents launched a vigorous campaign against thetariff hike, marked by shutter-down strikes and demonstrations, ultimatelyprompting the government’s policy reversal