The Central Power Purchasing Agency (CPPA) has applied to the National Electric Power Regulatory Authority (NEPRA) for a power tariff hike of Rs2.65 per unit due to fuel price adjustments.
According to the CPPA’s petition, hydropower generated 36.2 percent of electricity in September, coal 17.05 percent, gas 8.9 percent, and imported LNG 18.9 percent.
The cost of energy generated from furnace oil, on the other hand, was Rs 19.23 per unit in the month, according to the report.
The date for a hearing on the CPPA’s application has been set by NEPRA for October 27.
A massive increase in power tariffs has been approved.
On October 15, Federal Minister for Energy Hammad Azhar announced that the government has decided to raise the power tariff in light of Pakistan’s rising circular debt.
Azhar had said during a press conference in Islamabad alongside State Minister for Information and Broadcasting Farrukh Habib that the Rs1.39 hike in power cost will take effect on November 1.
“We now have the capacity to create enough electricity to meet demand, so we want to grow it. Last year, we implemented an industrial package, which proved to be a success, as we had a 15% growth in industrial activity “”Demand,” stated the minister.
“In the meantime, we’ve witnessed a 6-7 percent increase in electricity demand since the industrial sector’s peak hours were removed.”
According to the minister, the government decided to establish another package, known as the seasonal electricity package, in which users who use an extra unit compared to the previous year’s usage will receive an additional discount.
“We now have the capacity to produce enough electricity to fulfill demand, and we want to expand that capacity.
Shedding light on further steps, he had said that the government has closed old generation companies (gencos), while the National Electric Power Regulatory Authority (NEPRA) has also revised its target from 15% to 13%.