Pakistanis may face higher electricity bills in coming months

ISLAMABAD: Electricity consumers across Pakistan are likely to face a difficult period during December, January and February, as fuel price adjustments are expected to increase two to three times, ARY News reported, citing sources. 

Power Division sources said reduced hydropower generation during the winter months would increase reliance on expensive electricity generation sources, potentially pushing up electricity production costs.

The sources also warned that load management across the country could increase from December to February, making the three months particularly challenging for electricity consumers.

A major challenge for power plants will be the availability of locally supplied gas, while exceptionally high fuel prices in the international market are expected to keep electricity generation costs elevated.

According to Power Division sources, international fuel prices, including those of imported liquefied natural gas (LNG), have witnessed a significant increase.

The sources added that efforts had been made over the past few months to minimise the burden of fuel price adjustments and reduce the need for load management.

Read more: Electricity price hiked for one month under fuel price adjustment

Earlier, the National Electric Power Regulatory Authority (NEPRA) imposed a total fine of Rs60 million on the Central Power Purchasing Agency and the National Transmission and Despatch Company.

The action relates to abnormal increases in fuel costs and system inefficiencies in January 2024. According to NEPRA, the fuel cost benchmark for that month was set at Rs7.49 per unit, but the actual cost rose to Rs14.60 per unit.

The Central Power Purchasing Agency (CPPA) had sought an increase of Rs7.13 per unit under fuel price adjustment, prompting the authority to order an investigation.

The inquiry revealed that despite the availability of cheaper power generation sources, expensive electricity was produced using furnace oil and diesel.

NEPRA stated that output from LNG and nuclear power plants was reduced, while reliance on diesel and furnace oil resulted in costly generation worth Rs31.23 billion.