The Power Division has warned that the fuel price adjustment (FPA) on electricity bills could rise two to three times between December and February, making the winter months the most expensive period for consumers this year.
Power Division sources said rising prices of LNG, coal and other fuels are driving up the cost of electricity generation. Local gas supply to power plants is also expected to fall short in winter, when even household demand goes unmet. With hydropower output dropping sharply in the cold season, the system will have to depend on costlier fuels.
The sources added that high fuel prices in the international market will push the adjustment higher. They said authorities had limited the burden in recent months through measures such as two-hour load management, but global LNG and fuel prices have since climbed steeply.
Separately, the National Electric Power Regulatory Authority (NEPRA) has reserved its decision on a request to raise electricity tariffs by Rs2.56 per unit under the September FPA. If approved, consumers across the country, including those in Karachi, will bear an additional burden of Rs32.66 billion.
At the hearing, Central Power Purchasing Agency (CPPA) officials said the average fuel cost of electricity in September stood at Rs10.02 per unit, against the projected Rs7.46.
The total cost of generation for the month was Rs127.87 billion. Imported coal accounted for Rs37.14 billion, LNG for Rs31.93 billion, local gas for Rs13.89 billion, diesel for Rs13.26 billion, furnace oil for Rs11.81 billion and local coal for Rs7.95 billion. Distribution companies sold 12.76 billion units during the month.
The Power Division said the September adjustment could have reached Rs5 to Rs6 per unit without intervention. Measures including two-hour load management brought it down to the requested Rs2.56.
