The federal government has filed a request in the National Electric Power Regulatory Authority (NEPRA) for Rs1.26 per unit hike in the electricity prices. According to the media reports, the request was made under the fuel price adjustment for April. The NEPRA will hear the request on May 29. If approved, an additional amount will be collected from the consumers in June. According to the petition, 10.513 billion units of electricity were generated in April, while 10.196 billion units were distributed among distribution companies.

CPPA stated that the actual cost of electricity generation stood at Rs8.94 per unit, compared to a reference cost of Rs7.68 per unit. In terms of energy sources, 21.94 per cent of electricity was generated from hydropower, 14.51 per cent from local coal, 10.02 per cent from imported coal, and 0.97 per cent from furnace oil. Additionally, 8.01 per cent of electricity was generated using local gas, 20.52 per cent from imported LNG, and 17.91 per cent from nuclear energy.

The government, in its talks with the International Monetary Fund (IMF), has assured the latter of sweeping economic reforms ahead of its 2025–26 federal budget, including hikes in fuel, electricity, a move likely to place additional financial strain on people. The government plans to implement a series of fiscal measures starting July 1 aimed at reducing the fiscal deficit and addressing the country’s mounting energy-sector debt. These measures include additional levies on petroleum products, a new debt service surcharge on electricity bills, and adjustments to gas tariffs.

Credit: Independent News Pakistan (INP)