Just as you thought your monthly bills couldn’t get any higher, a New Electricity Price Increase that could add hundreds of rupees to your next electricity statement. The national power regulator is considering a fresh increase, and if approved, it will hit consumers within weeks. This isn’t a rumor; it’s an official petition that could strain household budgets even further.
The Central Power Purchasing Agency (CPPA) has formally requested the National Electric Power Regulatory Authority (NEPRA) to New Electricity Price Increase tariff under the monthly Fuel Price Adjustment (FPA) mechanism. This proposed hike is a direct response to the cost of generating power in the previous month and will affect all consumers nationwide.
What is the Proposed New Electricity Price Increase?
The CPPA has requested a tariff adjustment for one month. Here are the key details:
| Proposal Detail | Information |
|---|---|
| Requesting Authority | Central Power Purchasing Agency (CPPA) |
| Approving Authority | National Electric Power Regulatory Authority (NEPRA) |
| Proposed Increase | Rs. 0.48 per unit (kilowatt-hour) |
| Adjustment Type | Monthly Fuel Price Adjustment (FPA) |
| Applicable Period | For one month only (if approved) |
Why Are Electricity Prices Increasing Again?
The primary reason is the Fuel Price Adjustment (FPA). This is a monthly mechanism where NEPRA reviews the actual cost of fuel used to generate electricity. If the actual cost is higher than what was initially charged, the difference is passed on to consumers.
- Root Cause: The average cost of power generation in the subject month was Rs. 9.62 per unit.
- Fuel Mix: The cost depends on what fuels were used. Expensive fuels like Imported LNG and Coal increase the overall generation cost.
What Was the Electricity Generation Mix?
The cost is directly tied to the sources of power. Here’s a breakdown of the generation mix for the month under review:
| Power Generation Source | Share of Total Generation |
|---|---|
| Nuclear Power | 25.05% |
| Hydel (Hydroelectric) | 18.07% |
| Imported LNG | 17.24% |
| Local Coal | 13.99% |
| Natural Gas | 11.20% |
| Imported Coal | 10.13% |
Key Insight: While cheaper sources like nuclear and hydel made up a large portion, the high cost of imported fuels (LNG & Coal) is a major driver for the requested price hike.
When Will This Increase Affect Your Bill?
If NEPRA approves the CPPA’s request after a public hearing, the process is as follows:
- NEPRA Approval: The regulator reviews the petition and issues a decision.
- Government Notification: The federal government must then formally notify the increase.
- Bill Application: The Rs. 0.48 per unit increase will be applied to the electricity bills of the following month for all consumers of distribution companies (e.g., LESCO, IESCO, K-Electric).
How Much Will Your Bill Actually Increase?
The impact on your bill depends on your consumption. You can estimate it:
- Formula: Your Monthly Units Consumed x Rs. 0.48
- Example: If you use 300 units in a month, the increase will be 300 x 0.48 = Rs. 144 added to your total bill amount.
What is the Fuel Price Adjustment (FPA) Mechanism?
Consumers need to understand this common trigger for price changes:
- What it is: A monthly tariff adjustment to account for changes in the international prices of fuel (like gas, coal, oil) used in power plants.
- How it works: NEPRA calculates the difference between the projected fuel cost (already in your base tariff) and the actual cost incurred by power companies.
- The Result: If actual costs are higher, an FPA surcharge is added to your bill. If lower, a refund is supposed to be issued (which is rare).
How Can You Reduce the Impact of the Price Hike?
While you can’t stop the tariff increase, you can control your consumption:
- Shift to Solar: Consider installing solar panels to reduce dependence on the grid.
- Use Energy-Efficient Appliances: Replace old fans, bulbs, and geysers with energy-star rated products.
- Manage Peak Hours: Reduce use of heavy appliances (ACs, heaters, irons) during peak hours when tariffs are highest.
- Conduct an Energy Audit: Check for power leaks and repair faulty wiring or equipment.
Where to Get Official Updates?
For the final decision, rely only on official sources:
- National Electric Power Regulatory Authority (NEPRA): www.nepra.org.pk
- Your Distribution Company’s (e.g., LESCO, K-Electric) official website.
New Electricity Price Increase are a recurring challenge. Staying informed about the FPA mechanism and adopting energy-saving habits are your best defenses against rising bills. Monitor official channels for NEPRA’s final verdict and calculate your potential increase to manage your household budget effectively.