Electricity prices set to rise next month

Electricity prices are expected to rise across the country next month. The National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a hearing today regarding a request from the Central Power Purchasing Agency (CPPA), which seeks an increase of 19 paisa per unit under the fuel price adjustment mechanism. Reports indicate that distribution companies (DISCOs) received a total of 102.94 billion units of electricity in August, but production costs have significantly increased. The average production cost for electricity in August was Rs7.50 per unit, compared to Rs7.31 per unit in July. The cost of electricity generated from local coal was reported at Rs12.01 per unit, while the cost of electricity from imported coal rose to Rs14.07 per unit. Electricity generated from furnace oil was priced at Rs33 per unit, and the cost from gas was Rs13.43 per unit. Electricity produced from LNG was priced at Rs21.73 per unit, while the electricity imported from Iran was the highest at Rs41 per unit. The production cost from bagasse stood at Rs9.87 per unit. Sources suggest that NEPRA’s decision on the CPPA’s request is anticipated in the coming days. If approved, consumers will face an additional burden in their electricity bills for the upcoming month.