Power Tariff Likely to Drop by Rs1.30 Per Unit

Pakistan’s electricity consumers could see a reduction of Rs1.30 per unit in their power bills for December, as the Central Power Purchasing Agency (CPPA) has requested a decrease in the monthly fuel price adjustment.

The CPPA’s petition, set for review tomorrow, highlights that the estimated fuel cost per unit in December was Rs10.63, but the actual cost stood lower at Rs9.60 per unit. A total of 7.516 billion units were supplied to Distribution Companies (Discos) during the month.

In terms of power generation, 22.80% came from hydro sources, 10.06% from local coal, 1.59% from imported coal, and 0.03% from furnace oil. Additionally, local gas contributed 12.31%, LNG accounted for 20.70%, and nuclear energy made up 26.48% of the supply.

The proposed tariff cut, if approved, will apply for December 2024 only and will not impact lifeline or prepaid electricity consumers, who remain exempt under the winter package.