Electricity costs are set to rise by Rs2.63 per unit, leading to higher bills for consumers. This increase will add to their existing expenses.
The expected increase is due to the Fuel Charges Adjustment (FCA) for electricity used in June 2024.
The Central Power Purchasing Agency (CPPA), representing distribution companies (DISCOs), has submitted a formal request to the National Electric Power Regulatory Authority (NEPRA) to raise the electricity rate by Rs2.6307 per kilowatt hour (kWh) for June 2024 under the Fuel Charges Adjustment (FCA).
The CPPA’s detailed report shows that the reference fuel charge for June was Rs7.1403 per unit, but the actual cost was Rs9.7710 per unit. NEPRA has scheduled a public hearing on July 31, 2024, to evaluate and discuss the proposed tariff increase.
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The CPPA’s application indicates that June 2024 saw a total electricity generation of 13,459 GWh, with an average cost of Rs8.8938 per unit. The overall cost of energy production for the month was Rs119,704 million.
It should be noted that the hydropower, which is free of fuel costs, contributed 4,729 GWh, making up 35.13% of the total electricity produced.
