The Central Power Purchasing Agency (CPPA) has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) requesting a refund of PKR 1.03 per unit to electricity consumers as part of December’s fuel price adjustment. This move could provide much-needed financial relief to millions of users.

Breakdown of December’s Power Generation Costs

In December, the CPPA supplied 7.51 billion electricity units to DISCOs (Distribution Companies). The actual fuel cost for electricity generation was PKR 9.60 per unit, which is lower than the projected cost of PKR 10.63 per unit. This discrepancy has paved the way for the proposed adjustment.

Sources of Electricity Generation

Electricity production during December came from diverse sources:

  • Hydropower: Contributed 22.8% of the total supply.
  • Local Coal: Accounted for 10.06% of electricity generation.
  • Imported Coal: Added 1.59%.
  • Furnace Oil: Contributed a marginal 0.03%.
  • Local Gas: Generated 12.31% of the total electricity.
  • LNG (Liquefied Natural Gas): Supplied 20.7%.
  • Nuclear Energy: Topped the charts with a 26.48% share.

Upcoming Hearing

NEPRA is scheduled to review the CPPA’s request on January 30. If approved, this adjustment will benefit electricity consumers by providing refunds for the lower-than-expected fuel costs incurred in December.

Future Implications

The proposed adjustment not only promises immediate financial relief but also reflects the importance of efficient energy planning and cost management. It highlights the need for continued investment in diverse and cost-effective energy sources to stabilize electricity costs in the long run.