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CPPA seeks Rs1.20 per unit electricity price hike

Electricity consumers across Pakistan could soon face a fresh increase in their monthly power bills, as the Central Power Purchasing Agency (CPPA) has formally approached the National Electric Power Regulatory Authority (Nepra) for an increase of Rs1.20 per unit in electricity tariffs.

The request has been filed under the Fuel Charges Adjustment (FCA) mechanism for the month of June, which allows changes in electricity prices based on fluctuations in fuel costs used for power generation.

According to Nepra, the regulator has scheduled a public hearing on July 29 to review the CPPA’s petition. During the hearing, stakeholders will be given an opportunity to present their views before a final decision is made.

If Nepra approves the proposed adjustment, electricity consumers across the country—including K-Electric users—will have to bear an estimated additional financial burden of more than Rs18 billion through their electricity bills.

The Fuel Charges Adjustment is a routine component of Pakistan’s power tariff system and reflects changes in the cost of generating electricity from different fuel sources. The adjustment may either increase or reduce electricity bills depending on fuel prices and the country’s power generation mix during a particular month.

Nepra will issue its final determination after examining the CPPA’s request, relevant data, and feedback received during the public hearing. If approved, the revised charges will be incorporated into electricity bills in accordance with the regulator’s decision.

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