Pakistan’s Power Division forecasts Rs2.56 surcharge in November — Dawn
Pakistan’s Power Division of the Ministry of Energy forecasts that consumers’ electricity bills will rise by Rs2.56 per unit in November. The surcharge is linked to a September fuel cost adjustment and the use of more expensive fuels for electricity generation.
As Dawn reports, the expected impact of the adjustment on consumers’ November bills will amount to about Rs32.7 billion. This is Rs1.45 per unit more than the August fuel cost adjustment, which stood at Rs1.11 per unit.
Measures to limit the surcharge
The department said that targeted load management lasting approximately two to two and a half hours in September helped reduce the use of furnace oil and high-speed diesel. According to the division’s estimate, without these measures the increase could have been higher by another Rs3.44 per unit, and the potential surcharge could have reached Rs5–6.
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The department also claims that the supply of imported regasified liquefied natural gas for electricity generation at domestic gas prices reduced the burden on consumers by 83 paisas per unit. The division said that from January through August, the combined impact of fuel and quarterly adjustments amounted to 65 paisas per unit, or 1.9% of the base tariff.
Fuel prices and industrial consumers’ position
The Power Division explained the situation by a sharp rise in global fuel prices amid the conflict in the Middle East and supply chain disruptions following the closure of the Strait of Hormuz. The department noted that Pakistan sought to secure its needs for regasified liquefied gas under contracts and through spot-market purchases, despite Qatar declaring force majeure.
At the same time, industrial consumers dispute the claimed positive effect of the support package for additional electricity consumption. They argue that the capped rate of Rs22.96 per unit helps only certain consumers, while the actual capped cost of Rs34 per unit adds Rs11 to the average tariff for all consumers. Pakistan’s national electricity regulator last week held a hearing on revising or suspending this package; no decision has yet been announced.
