Nepra weighs Rs2.52 per unit surcharge

The Express Tribune reported that the National Electric Power Regulatory Authority (Nepra) has held back its ruling on a proposed Rs2.52 per unit surcharge tied to July fuel costs. If approved, the charge could add Rs36.54 billion to electricity bills in September. The request came from the CPPA-G, which acts for the distribution companies, after costlier imported fuel pushed generation expenses higher.

Actual fuel costs reached Rs9.6112 per unit in July, compared with a reference cost of Rs7.0929, and the CPPA-G wants the gap recovered via the monthly fuel adjustment. The Karachi Chamber of Commerce and Industry opposed the increase, urging greater use of local furnace oil in place of LNG and scrapping the levy on furnace oil. It warned of a Rs6 per unit rise from September 1, citing a Rs2.518 monthly charge and a Rs1.52 quarterly adjustment, alongside the expiry of a Rs1.98 relief.

Generation expenses rose 38.15 per cent to Rs162.55 billion during July, while output rose only 7.07 per cent to 15,122 GWh. Imported fuel drove the rise, with RLNG-based power costing Rs47.38 per unit against Rs22.03 a year earlier, even as its output fell 33 per cent to 1,629 GWh. Local coal, by contrast, cost Rs10.42 per unit to produce electricity.