Power Consumers Face Rs36.5bn Fuel Cost Hit in September Bills

بجلی صارفین کو ستمبر کے بلوں میں ساڑھے 36 ارب روپے کے اضافی فیول چارجز کا سامنا

Power Consumers Face Rs36.5bn Fuel Cost Hit in September Bills

Pakistan's electricity consumers could be asked to absorb Rs36.54 billion in higher fuel costs in September bills after the power regulator reserved its decision on a proposed Rs2.52 per unit surcharge for July, with costly imported fuel driving a sharp rise in generation expenses. The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its decision on the Central Power Purchasing Agency's (CPPA-G) request. CPPA-G, representing the distribution companies, said actual fuel costs rose to Rs9.6112 per unit in July from a reference cost of Rs7.0929. It wants the difference recovered from consumers through the monthly fuel adjustment. The Karachi Chamber of Commerce and Industry opposed the proposed increase. It urged the government to use local furnace oil instead of expensive LNG where feasible. It also called for removing the levy on furnace oil. It said consumers could face Rs6 per unit increase from 1 September, as Nepra considers a Rs2.518 per unit monthly fuel charge adjustment for July. The increase could be compounded by Rs1.52 per unit upward quarterly adjustment, which is expected to be filed with Nepra soon. At the same time, previous relief under quarterly adjustments will expire, adding to the overall impact on consumers. The Karachi Chamber of Commerce and Industry (KCCI) warned that the combined impact of monthly and quarterly adjustments will further raise costs for businesses and households. The chamber said the government had lowered the reference value to reduce its subsidy burden. It estimated that around Rs250 billion in subsidy costs had shifted to consumers. The proposed adjustment contrasts with the same period last year, when consumers received a refund.