Power consumers face Rs14.37 billion fuel cost adjustment in April bills

Electricity consumers are set to face a Rs14.37 billion increase in April bills after the power purchasing agency reported a gap between actual and charged fuel costs for February.

The Central Power Purchasing Agency told the National Electric Power Regulatory Authority that fuel charges in February were billed at Rs6.73 per unit, while actual generation costs stood at Rs8.37 per unit, creating a shortfall of Rs1.64 per unit.

Applied to 7.43 billion units sold during the month, the adjustment amounts to Rs12.18 billion, which rises to Rs14.37 billion after inclusion of general sales tax.

The issue was discussed during a public hearing chaired by Nepra Chairman Wasim Mukhtar, where industry representatives raised concerns over rising costs and potential future adjustments.

Officials indicated that fuel cost variations were linked to international energy prices, which continue to influence domestic electricity tariffs.

Total power generation in February stood at 7,696 gigawatt-hours, with a cost of Rs62.75 billion, averaging around Rs8.15 per unit.

If approved, the adjustment will also apply to K-Electric consumers, extending the impact to Karachi.

Nepra is expected to issue a final decision on the adjustment in the coming days.