CPPA Seeks Rs2.52 Power Tariff Hike for July Fuel Costs

The Central Power Purchasing Agency has asked the National Electric Power Regulatory Authority to allow an increase of Rs2.52 per unit in electricity prices under the July fuel price adjustment, in a move that could add another financial burden for power consumers across Pakistan. The request was reported from Karachi on Tuesday as households and businesses continue to face pressure from rising utility and fuel costs.

The proposed adjustment is based on electricity generation costs recorded during July. CPPA, which acts as a key power-sector purchaser for distribution companies, submitted its application to Nepra seeking permission to recover additional fuel-related expenses through consumer bills.

According to the application details, imported LNG remained one of the major cost drivers during the month. Around 10.78 percent of electricity was generated from imported LNG, with the fuel cost of LNG-based generation calculated at Rs47.37 per unit and the overall cost linked to that source reaching about Rs77.19 billion.

Furnace oil-based electricity also contributed to the cost calculation, although its share in generation remained relatively limited at 1.42 percent. The cost of furnace oil generation was reported at Rs10.77 billion, showing how even a smaller reliance on expensive fuels can influence overall monthly power-sector claims.

Nepra said it would hold a hearing on the CPPA request on August 27, after which the regulator will decide whether the proposed increase should be approved, revised or rejected. The hearing process is important because it allows scrutiny of generation data, fuel costs and the financial impact on consumers before any adjustment is passed on through bills.

The generation mix presented in the application showed that hydropower remained the largest contributor in July, accounting for 39.81 percent of total electricity generation. Local coal contributed 10.91 percent, imported coal stood at 14.38 percent and nuclear power made up 10.10 percent, with nuclear fuel cost recorded at Rs3.02 per unit.

Diesel-based generation, though limited in volume, was among the most expensive sources. Around 31 million units of electricity were generated using diesel during July, with its generation cost calculated at Rs54.47 per unit, highlighting the continued financial risk of relying on high-cost fuels during peak demand or supply constraints.

If Nepra approves the requested adjustment, electricity consumers could face an additional burden of around Rs41 billion, including GST. Such increases often affect household budgets, commercial activity and industrial operating costs, especially at a time when many consumers are already adjusting to higher petroleum prices and inflationary pressure.

Fuel price adjustments have become a recurring feature of Pakistan’s power-sector pricing framework. They are meant to reflect monthly changes in generation costs, but frequent increases also raise concerns about affordability, energy planning and the need to reduce dependence on imported and expensive fuels.

The next step will be Nepra’s public hearing later this month, where the regulator will examine CPPA’s figures before issuing its decision. Until then, consumers and businesses will be watching closely to see whether the proposed tariff hike is approved and how quickly it could appear in electricity bills.