ISLAMABAD: Power consumers in areas served by government-run electricity companies may soon get relief, as there’s a strong chance of a 65 paisa per unit reduction in electricity prices, according to the report.
The proposed cut is linked to the fuel cost adjustment for June. A formal request for this reduction was submitted by the Central Power Purchasing Agency (CPPA) to NEPRA, which is expected to hold a hearing on the matter tomorrow.
The CPPA’s application points to lower electricity production costs in June as the reason for the proposed reduction.
A total of over 13.31 billion units were produced during the month, with the average cost coming in at Rs7.68 per unit, compared to the reference cost of Rs8.33 per unit. This gap has created room for a downward adjustment in consumer rates.
One of the key reasons for the lower cost was the higher share of hydropower in electricity generation.
Hydropower made up 39 percent of the total electricity generated. Additionally, 20 percent came from coal (both local and imported), and 16 percent from imported RLNG.
If approved by NEPRA, the reduced tariff could offer financial relief to millions already dealing with rising living costs. A final decision is expected after the upcoming public hearing.
In an earlier development, NEPRA had already approved a cut in electricity rates through the monthly fuel adjustment. As per the official notification, K-Electric users will benefit from a Rs4.03 per unit decrease based on April’s fuel adjustment.
For other parts of the country, a reduction of 5 paisas per unit has been approved under the May adjustment. These changes will reflect in July’s electricity bills.