ISLAMABAD: Electricity consumers may face another price hike as power distribution companies have requested a tariff increase of up to Rs2.48 per unit. The companies, through the Central Power Purchasing Agency (CPPA), have petitioned the National Electric Power Regulatory Authority (NEPRA) to collect an additional Rs3.488 per unit from consumers under the fuel charges adjustment (FCA) for April 2024. NEPRA has scheduled a public hearing for May 30, 2024, to address the request.
The CPPA reported that 8,639 GWh of electricity was generated in April 2024 at a cost of Rs79.55 billion, or Rs9.208 per unit. After accounting for transmission losses and a backward adjustment of Rs3.06 billion, the net cost delivered to distribution companies was Rs75.2 billion (or Rs8.98 per unit). The increase is attributed to higher actual fuel costs incurred compared to the reference fuel cost charged to consumers.
Power generation in April 2024 saw varied performance across sources: hydropower generation increased by 10.6%, while coal, natural gas, and RLNG-based generation experienced declines. Notably, no electricity was generated from high-speed diesel and furnace oil.
In parallel, K-Electric (KE) has received approval from NEPRA for its Power Acquisition Programme (PAP) for FY 2024-2028. This plan aims to enhance power supply reliability in Karachi by integrating 1,282 MW of renewable energy, including solar and wind projects, by 2030. Key projects include a 270 MW solar PV project in Karachi and a 200 MW hybrid plant near the Dhabeji Grid Station. These initiatives are part of KE’s strategy to promote sustainability and reduce the city’s carbon footprint.
Story by Zafar Bhutta
