An electricity bill hike is on the way for power users, with the power division projecting an additional fuel cost adjustment of Rs2.56 per unit for electricity consumed in September. The division estimates this will place a burden of about Rs32.7 billion on consumers' bills in November. It said the increase would have been larger, by around Rs3.44 per unit, had targeted load management not been used.
How the September adjustment was calculated
The fuel cost adjustment, or FCA, is a monthly charge that moves consumer bills up or down when the cost of fuel used for power generation differs from the level built into the base tariff, which is the standard price set by the regulator. The division said targeted load management lasting around two to two-and-a-half hours in September reduced reliance on costly alternative fuels, including furnace oil and high-speed diesel. It also said supplying imported re-gasified liquefied natural gas (RLNG) at domestic gas prices eased the burden by 83 paise per unit.
The division said the August FCA was Rs1.11 per unit, which makes the September projection Rs1.45 higher. It added that the Rs5-6 per unit rise it had warned of earlier was averted. These figures are advance estimates, because the division has begun issuing them before the Central Power Purchasing Agency (CPPA), the body that buys power for the grid, makes its formal regulatory filing.
Global fuel prices and the base tariff
The division blamed the rise on international fuel markets, which it said had moved sharply because of regional conflicts and supply disruptions after the closure of the Strait of Hormuz, a key route for oil shipments. Brent crude, the global oil benchmark, rose beyond $120 per barrel, compared with around $70 assumed when the base tariff was set. Qatar has declared force majeure, a clause that excuses a supplier from contract duties during unforeseen events, but Pakistan said it was still working to meet its RLNG needs through contracted and spot cargoes.
The division also said the combined effect of fuel and quarterly adjustments from January to August was limited to 65 paise per unit, or 1.9 per cent above the base tariff. It credited tariff rationalisation and an extra electricity package for industrial and agricultural consumers, which it said encouraged greater use of grid power.
Industry objections and the Nepra hearing
Industrial consumers dispute those benefits. They argue that the Rs22.96 per unit marginal cost rate helps only a limited number of users, while an actual marginal cost of around Rs34 per unit adds roughly Rs11 per unit to the average tariff, spreading the cost to all consumers. At their request, the National Electric Power Regulatory Authority (Nepra) held a public hearing last week on revising or suspending the package, but it has not yet decided.
The power division said it is continuing to monitor fuel markets and supply chains. Until the formal filing is made and Nepra rules on the package, the November figures should be treated as projections rather than final charges.
Aasan alfaaz mein
Bijli ka fuel cost adjustment September ke liye Rs2.56 per unit tak projected hai, aur iska asar November ke bills par aaye ga. Power division ke mutabiq is se consumers par lagbhag Rs32.7 arab ka bojh padega. Jitni zyada bijli aap istemal karein gay, utna zyada adjustment bill mein dikhe ga. Industrial consumers is package par etraz kar rahe hain aur Nepra ka faisla abhi baqi hai.
