The consumers may face another blow to their budgets as the Central Power Purchasing Agency (CPPA) has proposed a Rs 4.66 per unit increase in electricity tariffs. This move, if approved by the National Electric Power Regulatory Authority (Nepra) tomorrow could translate to an additional burden of over Rs 36 billion on consumers. The proposed hike stems from November's fuel price adjustments and arrears. CPPA's justification rests on the fuel mix used for electricity generation during the month. While hydropower remained the primary source at 36.5%, nuclear (over 20%) and imported coal (over 6%) also played a significant role. Local coal contributed 13%, domestic gas 9.2%, and LNG 10.6%.

This potential price increase comes on the heels of previous hikes, further squeezing household budgets already strained by inflation and economic pressures. Consumers, businesses, and industries alike would bear the brunt of this additional cost, raising concerns about its impact on economic activity and affordability. Nepra's decision on the CPPA's request is expected tomorrow December 27. The regulatory body faces a crucial balancing act: ensuring cost recovery for power generation while minimizing the burden on consumers. Public anticipation remains high as Nepra deliberates on this potentially impactful decision.

Credit: Independent News Pakistan (INP)