Unusual RLNG price drives up electricity cost

Dawn reported that RLNG-fired electricity cost Rs47.4 per unit in July, a record 242 per cent jump from April's sub-Rs14 level. The surge followed government purchases of five costly spot cargoes after Qatari supplies were halted amid the US-Iran war. Power companies have now asked for a Rs2.52 per unit fuel cost adjustment in September bills, even though about 73pc of July generation came from cheaper domestic sources.

Nepra has set a public hearing for 27 August to assess whether the Rs36.5bn extra demand from power firms is justified. Ogra's August RLNG rates, up a record 32pc, were fixed at $25.83 per mmBtu for Sui Northern Gas Pipelines and $25.09 for Sui Southern Gas Company. Dawn noted that RLNG prices climbed nearly a third in August, a rise that would add to consumer bills in October.

According to the CPPA, the actual fuel cost in July reached Rs9.61 per unit against a reference of Rs7.093, while consumption rose about 6pc year on year to 14,501 GWh. Local coal and nuclear generation remained cheap, while diesel and furnace oil plants supplied less than 1.63pc of grid supply.