Power keeps getting pricier

Business Recorder reported that August grid output hit 14.9 billion units, up 5.5 percent on a year earlier and 3 percent over the reference level. The 12-month moving average paints a flatter picture, with growth of only 2.6 percent and monthly output of about 10.5 billion units. According to the paper, the stronger monthly figure stems from meeting a higher evening load rather than from a broad rise in demand.

Hydel held steady near 5.6 billion units, supplying 38 percent of total output. RLNG's share slipped to 9 percent, with 1.3 billion units produced, 26 percent below reference and a sixth straight monthly shortfall. Imported coal covered the gap, reaching a record 16 percent share and 2.3 billion units, while RLNG-based electricity again averaged more than Rs45 per unit for a second month.

Marginal cost during peak hours reached Rs55 per unit in August, well above the levels of the previous three years. The fuel cost adjustment sought is about Rs1.7 per unit, though the final allowance is expected near Rs1.5 per unit. Reported local coal cost fell to an all-time low of roughly Rs5.5 per unit, a drop tied to a nearly Rs10 billion adjustment booked mostly against Thar Coal Block-1's power generation company. Nuclear's share also slipped to about 10 percent, its lowest in almost four years, while delayed maintenance adds pressure.