Good news for electricity consumers: Possible price cut in January

ISLAMABAD: In a positive development for electricity consumers, the price of electricity per unit is expected to decrease by Rs. 1.03 for one month. The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) for a reduction in electricity tariffs for December’s fuel price adjustment.

NEPRA is scheduled to hear CPPA’s application on January 30th. The request for the tariff adjustment comes after the agency provided 7.51 billion kilowatt-hours (kWh) of electricity to Distribution Companies (DISCOs) in December.

According to the CPPA’s request, the fuel cost for electricity generation in December was Rs. 9.60 per unit. However, the estimated cost for the month was Rs. 10.63 per unit, reflecting a potential reduction.

The report further highlights that hydropower contributed 22.80% of electricity generation in December, while local coal accounted for 10.06%. Imported coal contributed 1.59%, and furnace oil had a minimal share of 0.03% in the generation mix.

Local gas and LNG played significant roles, contributing 12.31% and 20.70% of electricity generation, respectively. Nuclear power also had a considerable share, accounting for 26.48% of the overall electricity produced in December.