CPPA Requests Rs1.20 Per Unit Power Tariff Hike for June

Pakistan’s Central Power Purchasing Agency (CPPA) has filed a request with the National Electric Power Regulatory Authority (NEPRA) seeking a Rs1.20 per unit increase in electricity tariffs for June under the monthly fuel charges adjustment (FCA) mechanism.

Basis of the Request

In its petition to the regulator, CPPA attributed the proposed hike to fluctuations in fuel costs incurred while generating electricity during the month. NEPRA has fixed July 29 as the date for a public hearing on the matter, after which it will issue a ruling on whether to approve the adjustment.

Generation and Supply Figures

Per the petition, Pakistan’s power system generated 13.431 billion units of electricity in June, of which over 13 billion units were delivered to distribution companies (DISCOs) across the country.

CPPA reported that the average generation cost for the month came to Rs8.91 per unit — well above the reference benchmark of Rs7.71 per unit set for comparison. That Rs1.20 gap between actual and reference cost is what’s driving the requested tariff increase.

Fuel Mix Breakdown

The generation mix submitted by CPPA shows the following contributions to June’s electricity output:

Hydropower remained the dominant source, contributing well over a third of total generation, while renewables like wind and solar together made up under 6% of the mix.

What’s Next

NEPRA is expected to examine the submitted data and gather input from stakeholders before issuing a final decision on the proposed adjustment.

This request follows an earlier FCA-related increase of Rs0.34 per unit for May, which NEPRA approved earlier this month. That hike applied across all distribution companies, including K-Electric, and was already reflected in customers’ July electricity bills.