Electricity consumers across Pakistan may soon see their bills increase by Rs1.78 per unit for one month following a petition seeking approval of January's monthly fuel cost adjustment. The Central Power Purchasing Agency (CPPA) has formally submitted this request to the National Electric Power Regulatory Authority (NEPRA), which has scheduled a hearing on the matter for February 26.
Fuel Cost Adjustment Details
According to the CPPA's application, Pakistan generated 9.14 billion units of electricity during January, with 8.762 billion units actually supplied to distribution companies. The actual fuel cost for the month stood at Rs12.17 per unit, significantly higher than the reference cost of Rs10.39 per unit. This discrepancy forms the basis for the proposed Rs1.78 per unit increase that would affect all electricity consumers for one billing cycle.
Tariff Restructuring Proposal
Separately, NEPRA conducted a public hearing on February 10 regarding proposed changes to Pakistan's electricity tariff structure. Officials from the Power Planning and Monitoring Company (PPMC) presented detailed plans that include significant modifications to how consumers are billed.
Industrial Sector Relief
The most substantial change proposed is a reduction of Rs4.04 per unit in electricity tariffs for the industrial sector. This measure aims to enhance industrial competitiveness and alleviate pressure on Pakistan's export sector by lowering production costs for manufacturers.
Expanded Fixed Charges for Households
The proposal dramatically expands fixed charges to include households consuming up to 300 units per month, including previously protected consumers. Previously, only non-protected consumers using more than 300 units faced fixed charges.
For protected consumers, the plan establishes fixed monthly charges at Rs200 for those consuming up to 100 units and Rs300 for those using up to 200 units. Non-protected consumers would face higher rates: Rs275 per month for consumption up to 100 units, Rs300 for up to 200 units, and Rs350 for up to 300 units.
Revised Charges for Higher Consumption
The proposal includes significant increases for non-protected consumers in higher consumption brackets:
- 301–400 units: Fixed charges would increase to Rs400 from Rs200
- 401–500 units: Fixed charges would rise to Rs500 from Rs400
- 600 units: Fixed charges would increase to Rs675 from Rs600
However, some relief is proposed for the heaviest consumers:
- Up to 700 units: Fixed charges would decrease by Rs125 to Rs675
- More than 700 units: Fixed charges would drop by Rs325 to Rs675
Revenue Generation and Redistribution
Officials estimate that the revised fixed charges would generate approximately Rs101 billion annually. This additional revenue would be redirected to subsidize the industrial sector, creating a cross-subsidy mechanism where household consumers help fund industrial tariff reductions.
Fuel Price Increases
In related energy sector developments, the government has increased petroleum prices for the coming fortnight. According to a notification issued by the Petroleum Division, petrol prices have risen by Rs5 per litre to Rs258.17, while high-speed diesel has increased by Rs7.32 per litre to Rs275.70. These revised prices took effect on February 16 and will remain in force for the next two weeks.
The simultaneous adjustments in electricity and petroleum prices highlight the ongoing challenges in Pakistan's energy sector, where international fuel prices and domestic generation costs continue to put pressure on both consumers and policymakers.
