Islamabad:
The National Regulatory Authority of Electric Power (NEPRA) reduced the base energy rate at RS1.49 per unit for fiscal year 2025-26 on Wednesday.
The recommendation in this regard has been sent to the Federal Government.
Last month, the government moved to review the base power rate for the next fiscal year, which suggests a modest cut that varies from 30 paisas to up to RS2.25 per unit in seven different scenarios.
Assuming stable economic conditions and a exchange rate of RS280, the average base rate would decrease by RS2.25 per unit to RS24.75 in 2025-26, compared to the current rate of around RS27 per unit.
If the local currency depreciates RS300 against the dollar, the base rate would decrease by approximately 30 paisas per unit. This decrease is mainly driven by a fall in capacity payments.
Meanwhile, energy consumers throughout the country, excluding users of K-Electric (KE) and Lifeline, can face an increase of 10 paisa per unit in electricity rates under the adjustment of fuel loads (FCA) for May 2025.
The Energy Regulator is scheduled to listen to the proposed increase of RS0.1015 by Kilovatio-Hora (KWH) on June 30. The session will also be available online through Zoom.
The proposal has been presented by the Central Agency Power Compating Garante Limited (CPPA-G) on behalf of the Ex-Wapda distribution companies (XWDISCOS).
According to CPPA-G, the actual fuel cost in May stood at RS7.4940/kWh, compared to a reference cost of RS7.3925/KWh, which resulted in the requested increase.
In May, 12,755 GWh of electricity were generated at a cost of RS99.153 billion, averaging RS7.7739/kWh. After deducting transmission losses of 355 GWh (2.78%) and adjustments, 12,367 GWh to discos were delivered to RS92.676 billion or RS7.4940/KWh. Hydel’s power led the combination of generation with 37.98%(4,844 GWh), followed by RLNG (16.99%), nuclear (15.77%) and local coal (11.08%). Imported coal contributed 6.24%, while Gas added 6.92%. Other sources included RFO, Solar Energy, Wind and Bagazo.
The energy regulator has invited interested parties to join the audience and present comments. If approved, the FCA will request only one month.
