The government is preparing to impose another major financial burden on electricity consumers, with more than Rs36 billion likely to be recovered through electricity bills in September.
Consumers already struggling with inflation may face an additional charge of Rs36.54 billion in their September electricity bills.
According to sources, the power regulator has reserved its decision on a proposal to increase the electricity price by Rs2.52 per unit under the July Fuel Price Adjustment. If approved, the increase will directly affect electricity bills issued in September.
The Central Power Purchasing Agency (CPPA) had requested an increase of Rs2.52 per unit based on the cost of electricity generation in July. The agency maintained that expensive fuels were used for power generation during the month, resulting in higher generation costs.
According to figures presented during the hearing, the initial estimated additional burden on consumers, including GST, was around Rs41 billion. However, following the regulatory review, the revised amount of additional fuel costs stands at Rs36.54 billion.
The figures showed that 10.78 percent of electricity was generated from imported LNG in July, at a cost of Rs47.37 per unit. Around Rs77.19 billion was spent on electricity generation through LNG.
Furnace oil was another expensive source of electricity generation. It accounted for 1.42 percent of total generation in July, with a per-unit cost of Rs50.07, while approximately Rs10.77 billion was spent under this head.
Around 31 million units of electricity were also generated from diesel, with the cost reaching Rs54.47 per unit.
On the other hand, hydropower accounted for 39.81 percent of total electricity generation, local coal 10.91 percent and imported coal 14.38 percent. Nuclear sources generated 10.10 percent of electricity, with a per-unit cost of only Rs3.02.
Following the hearing on the CPPA’s request, the decision now rests with the power regulator. If the proposed increase of Rs2.52 per unit is approved, consumers will have to pay more through their September electricity bills.
This could transfer an additional burden of Rs36.54 billion onto the public, who are already facing high inflation and heavy electricity bills.
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