Electricity consumers across Pakistan may face a harder stretch over the coming winter months, according to Power Division sources. The sources expect fuel price adjustments to rise two to three times during December, January and February, a period they described as especially difficult for consumers.
The sources said lower hydropower generation in winter would increase dependence on costlier sources of electricity, which could push up production costs. They also warned that load management could intensify between December and February.
Gas supply and global fuel prices drive costs
A major challenge for power plants will be the availability of domestically supplied gas, the sources said. Very high fuel prices in international markets are also expected to keep generation costs elevated.
Also read: Govt to end six-month higher power tariff for 200-plus units · Govt says global prices leave no room for oil price cuts
According to the sources, the prices of fuels on world markets, including imported liquefied natural gas (LNG), have risen significantly. They added that steps taken over recent months aimed to ease the burden of fuel price adjustments and reduce the need for load management.
NEPRA fines CPPA and transmission company over 2024 fuel costs
Earlier, the National Electric Power Regulatory Authority (NEPRA) imposed a total fine of Rs60 million on the Central Power Purchasing Agency (CPPA) and the National Transmission and Despatch Company. The penalty concerns abnormal rises in fuel costs and system inefficiencies in January 2024.
According to NEPRA, the fuel cost benchmark for that month was Rs7.49 per unit, but the actual cost climbed to Rs14.60 per unit. The CPPA had sought an increase of Rs7.13 per unit under fuel price adjustment, which led the authority to order an investigation.
The inquiry found that expensive electricity was produced using furnace oil and diesel even though cheaper generation sources were available. NEPRA said output from LNG and nuclear plants was reduced, while reliance on diesel and furnace oil resulted in costly generation worth Rs31.23 billion.
