CPPA seeks Rs. 4.66/unit increase in electricity price

ISLAMABAD,  : Pakistani electricity consumers may face a hefty rise in their bills, with the Central Power Purchasing Agency (CPPA) seeking a 4.66 rupee per unit increase from the National Electric Power Regulatory Authority (NEPRA). The application, scheduled for a hearing on December 27, could impose a 40 billion rupee burden on consumers if approved.

The request, filed under the Fuel Charges Adjustment (FCA) mechanism, aims to recover operational costs for electricity companies. This includes a 4.96 rupee per unit monthly operation fee, Rs88 million in employee loans, and Rs60 million in administrative expense taxes, all to be passed onto consumers.

The CPPA argues that these charges should be covered by quarterly adjustments. However, critics raise concerns about unaccounted payments to private power plants, unverified taxes, and an opaque power assessment system based on “guesswork.” NEPRA, they claim, lacks proper oversight of payments to power plants, with CPPA and other entities making capacity payments on estimates.

Adding to these concerns is the alleged neglect of power plant maintenance. Tests to determine usable capacity and heat rate, mandatory every 3-6 months, haven’t been conducted for years, raising questions about efficiency and potential cost inflation.