Islamabad, Nov 27: The government is expected to notify a 26 paise per unit increase in electricity tariffs for December due to a negative fuel cost adjustment (FCA) of Rs. 1.28 per unit. While the Central Power Purchasing Agency (CPPA) initially sought a Rs. 1.02 per unit negative FCA for October, the higher current FCA will lead to the tariff hike for December.
Key Details:
- Impact on Domestic Users: The increase will not affect domestic users consuming up to 300 units per month.
- Adjustment Type: The monthly FCA accounts for fuel price variations, with additional costs included in the quarterly base tariffs set by the federal government.
- Fuel Supply Mix:
- 71% of electricity in October was generated from domestic fuels.
- Hydropower contributed 31%, LNG accounted for 19.5%, and local coal contributed 14.8%.
- Fuel Cost Variation: The most expensive fuel, furnace oil, cost Rs. 29.14 per unit, while nuclear energy remained the cheapest at Rs. 1.51 per unit.
Despite a 19% drop in fuel costs compared to last year, electricity consumption reached 9.98 billion units in October, contributing to the rise in tariffs.
