ISLAMABAD: In a welcome development for power consumers across Pakistan, electricity prices are likely to be reduced by 37 paisas per unit under the monthly fuel cost adjustment (FCA) mechanism.
The Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) for the September FCA, seeking approval for the reduction. NEPRA will conduct a hearing on October 29 to review the request.
According to the CPPA report, a total of 12.59 billion units of electricity were generated in September, while 12.21 billion units were supplied to distribution companies (DISCOs).
The cost of power generation during the month stood at Rs 7.09 per unit, compared to the reference cost of Rs 7.65 per unit.
The data shows that 37.99% of electricity was generated from hydropower, 9.54% from local coal, 8.10% from imported coal, 14.41% from natural gas, 14.41% from LNG, and 17.69% from nuclear sources.
Only 0.77% of the total power generation came from furnace oil, which remains one of the most expensive fuels.
If approved, this reduction will provide some relief to electricity consumers burdened by rising energy costs in recent months.
