NEPRA has raised the electricity tariff by Rs4.9 per unit due to fuel adjustment for February 2024. This decision comes with a cautionary note, as declining demand may lead to further tariff hikes.
The adjustment entailed a National Average Uniform increase of Rs4.9213 per kilowatt hour (kWh) for former Wapda power distribution companies (XWDISCOs), reflecting variations in fuel charges for February.
CPPA-G reported an actual fuel cost of Rs9.4254/kWh, compared to the reference cost of Rs4.4337/kWh, seeking an increase of Rs4.9917 per unit. While some fuel prices matched reference values, additional fuels like re-gasified liquefied natural gas (RLNG) were utilized due to system needs.
Actual generation saw a negative growth of -12.2% against reference generation, signaling declining demand, a trend that concerned NEPRA. By February 2024, overall demand had decreased by approximately 12% compared to projected levels, prompting expectations of further tariff increases due to reduced sales.
NEPRA instructed CPPA-G and the energy ministry to analyze the impact of lifting commercial-based load-shedding on demand and propose strategies to enhance it.
