Pakistan's power regulator has reserved its decision on a proposed Rs2.56 per unit electricity price increase on account of monthly fuel cost adjustment for September, as higher fuel expenses pushed the average generation cost well above the reference rate. The National Electric Power Regulatory Authority (Nepra) completed a hearing Wednesday on a petition filed by the Central Power Purchasing Agency (CPPA-G) seeking the monthly fuel charges adjustment.
If approved, the increase would also apply to K-Electric consumers under government policy guidelines. CPPA-G reported that the average fuel cost of electricity rose to Rs10.02 per unit in September, compared with the reference rate of Rs7.46.
Total generation costs reached Rs127.87 billion during the month. During the public hearing presided over by Nepra authorities, consumer representatives and industrial stakeholders raised serious concerns over the escalating electricity tariffs and their devastating impact on the manufacturing sector and households.
The petitioner explained that the fluctuation in fuel prices, particularly the variations in international fuel markets and generation mix changes, directly influenced the monthly adjustments. Officials noted that hydel generation played a vital role, but the heavy reliance on imported fuels during specific periods distorted the projected benchmarks.
The regulator thoroughly examined data concerning power plants' operations, efficiency levels, and actual fuel consumption figures submitted by the CPPA-G before reserving the final judgment. Industrial consumers argued that persistent tariff hikes are rendering local products uncompetitive in global export markets.
Business leaders emphasized that continuous adjustments add an unbearable financial burden to operational expenses, threatening factory closures and widespread unemployment across major industrial hubs in the country. In response to these concerns, Nepra panel members stated that every petition is scrutinized strictly according to the economic merit order and verified generation data.
The authority assured stakeholders that consumer interests are carefully balanced against the operational requirements of power generation companies to maintain grid stability. The central power purchasing body defended its stance by pointing out that capacity payments and fixed financial obligations significantly skew the final pricing structure.
They maintained that fuel cost adjustments strictly reflect the variance between estimated benchmark costs and actual expenditure incurred during the specific billing month. Consumers across Pakistan continue to struggle with soaring utility bills, driven by structural reforms, currency depreciation, and previous tariff rationalization programs mandated by international financial institutions.
The macroeconomic pressure has intensified debates surrounding the sustainability of the current power sector framework. Nepra officials confirmed that the detailed written order containing the final decision regarding the Rs2.56 per unit adjustment will be issued within the statutory timeframe.
If the adjustment is fully granted, electricity bills for the upcoming billing cycle will reflect the additional surcharge, impacting millions of residential, commercial, and industrial consumers nationwide. The power sector watchdog reiterated its commitment to transparency and directed distribution companies to ensure accurate meter readings and billing generation.
Stakeholders now await the official notification to gauge the exact financial implications on their monthly budgets.