Base electricity tariff may rise by over Re1 from next year

ISLAMABAD: The base electricity tariff in Pakistan is likely to rise by more than Re1 from next year. If tensions in the region worsen further, the base price could go up by as much as Rs4 per unit.

The National Electric Power Regulatory Authority (NEPRA) has completed the hearing on a request from the Central Power Purchasing Agency (CPPA). The decision will be issued after the figures are reviewed. During the hearing, the CPPA presented six scenarios for setting the power purchase price.

The NEPRA chairman asked what would happen after captive power left the system that would cause demand to rise.

According to the CPPA, the world has faced uncertainty for the past six months, and it is difficult to make projections for the future in the present conditions. The base electricity tariff is estimated to stay at Rs27.09.

The CPPA said the current rise in electricity prices under fuel cost is a result of the war, and conditions will improve as the fuel situation gets better. This year, load shedding was also carried out because of fuel shortages and high prices.

The price of imported coal continues to fluctuate, while LNG is also linked to crude oil. The base price has been set keeping in view the price differences being faced. The bigger challenge is not the rise in electricity demand but the prices of imported fuel.