ISLAMABAD: Electricity consumers in Pakistan may face some of their toughest months from December to February, as rising fuel costs are expected to push up electricity prices during the winter season, according to sources in the Power Division.
The sources warned that fuel price adjustments (FPAs) could increase two to three times during these three months, adding to the financial burden on consumers.
Higher prices of liquefied natural gas (LNG), coal and other fuels are increasing the cost of electricity generation. The situation is expected to become more challenging in winter, when hydropower production usually declines significantly.
The sources said limited supplies of locally produced gas would also create difficulties for power generation. Domestic gas supplies are often insufficient during winter, as household consumption receives priority. This could leave power plants with little option but to rely on more expensive fuels to meet electricity demand.
High fuel prices in the international market are also expected to contribute to an increase in monthly fuel price adjustments, the sources added.
In recent months, authorities made efforts to keep the fuel-related burden on consumers under control. These efforts included load management of up to two hours. However, the sources said international fuel prices, particularly those of LNG, have now risen considerably.
As a result, electricity consumers could face a sharp increase in fuel price adjustments over the coming winter months, making December, January and February particularly difficult for household budgets.
