Electricity price likely to increase by Rs6.1 per unit

After a massive hike in the prices of petroleum products, electricity prices are likely to be jacked up by Rs6.1 per unit on account of monthly Fuel Price Adjustment (FPA) for the month of January 2022.

As per details, Central Power Purchasing Agency (CPPA), on behalf of power distribution companies (DISCOs), has requested National Electric Power Regulatory Authority (NEPRA) to approve Rs6.1060 per kilowatt (kWh) increase in the power tariff under the head FPA of the month of January 2022 for all consumer categories of distribution companies, except for lifeline and K-Electric consumers. NEPRA is scheduled to hear the CPPA plea on February 28.  

According to sources in the power sector, power consumers of all DISCOs except K-Electric will bear an additional burden of approximately Rs60 billion if NEPRA grants its approval to increase the power tariff by Rs 6.1 per unit on account of FPA of January 2022.

“Collection of additional Rs 60 billion from the electricity consumers is expected during the next month’s electricity bills if NEPRA grants approval to jack up the power price,” said sources.

The CPPA, in its application, informed that 5.83 per cent electricity was produced with water/hydel source, 33.15 per cent from coal, 6.73 per cent from high speed diesel (HSD), 14.37 per cent from natural gas, 7.12 per cent from imported Liquefied Natural Gas (LNG), 14.37 per cent from nuclear power, wind 2.22 per cent, baggasse 1.22 per cent, import Iran 0.36 per cent and with solar source was 0.53 per cent. Similarly, total energy generated was 8,797 Gigwhatt (GWh).

It is also learnt from CPPA request that the most expensive electricity was generated from high-speed diesel during the month of January 2022 as the cost of the electricity generated from diesel (HSD) was registered at Rs25.98 paisa per unit while the cost of power generation from coal stood at Rs14.10 per unit, furnace oil Rs22.80 per unit, LNG Rs16.70 per unit, gas Rs7.74 per unit, nuclear Rs1.07 per unit, bagasse Rs 5.98 per unit.

NEPRA, in a public hearing notice regarding fuel charges adjustment for the month of January 2022 for DISCOs, has invited all the interested parties to raise written as well as oral objections as permissible under the law at the public hearing.

It is pertinent to mention that the government has recently increased the petrol price by Rs12.03 per litre and high speed diesel (HSD) price by Rs9.53 per litre for the second half of on-going February 2022.