Here’s How High Electricity Bills You Will Pay in November

Electricity consumers throughout Pakistan could face an further Rs. 32.7 billion in November bills after the Power Division projected a fuel cost adjustment (FCA) of Rs.

Key points

• Despite Qatar declaring force majeure, Pakistan continued efforts to secure RLNG through available contracted supplies and extra spot cargoes where needed, the Power Division stated.
• The Power Division remarked targeted load management during September assisted limit the projected rise.
• Supplying imported re-gasified liquefied natural gas (RLNG) to power plants at domestic gas rates additionally reduced the estimated adjustment by 83 paisa per unit.
• The Power Division remarked it would continue monitoring international fuel costs and supply chains to limit the impact of external cost increases on electricity consumers.
• Nevertheless, industrial consumers have challenged the benefits of the backing package, arguing that its marginal rate of Rs.

Meanwhile, the projected adjustment is Rs. 1.45 per unit higher than the Rs. 1.11 per unit FCA for August. The final adjustment will depend on the applicable regulatory determination.

Notably, the Power Division remarked targeted load management during September assisted limit the projected rise. Without these measures, the adjustment could have reached Rs. 3.44 per unit, according to the division. IESCO Warns Consumers of Temporary Power Shutdowns.

It remarked restricting electricity supply for around two to two-and-a-half hours daily reduced the need to generate power using expensive fuels, including furnace oil and high-speed diesel.

In practice, the division attributed the pressure on electricity costs to rising international fuel rates and constraints on LNG supplies.

It remarked regional tensions and supply chain disruptions after the closure of the Strait of Hormuz had pushed Brent crude rates above $120 per barrel, compared with the roughly $70 per barrel benchmark employed to calculate the base electricity tariff.

For context, the division additionally stated the combined impact of fuel cost adjustments and quarterly tariff adjustments from January to August had been limited to 65 paisa per unit, equivalent to 1.9 percent of the base electricity tariff.

It attributed this partly to tariff rationalization and an extra electricity consumption package for industrial and agricultural consumers.

Nevertheless, industrial consumers have challenged the benefits of the backing package, arguing that its marginal rate of Rs. 22.96 per unit applies to only a limited group.

They say the actual marginal cost of around Rs. 34 per unit leaves an extra cost of concerning Rs. 11 per unit that is passed into the average tariff, affecting other consumers as well. PM Shehbaz Rejects LPG Auction Plan.

After a request from industrial consumers, the National Electric Power Regulatory Authority (NEPRA) held a public hearing last week on whether to revise or suspend the incremental consumption package. A decision is still pending.

Notably, the Power Division remarked it would continue monitoring international fuel costs and supply chains to limit the impact of external cost increases on electricity consumers. Stay Connected with ProPakistani.

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Taken together, the developments around here's How High Electricity Bills You Will Pay in November point to a situation that is still moving, and the coming days should bring more clarity.