Consumers to pay Rs2 under fuel tariff adjustment

After several months, a fuel cost adjustment will add Rs2 per unit to the burden of power consumers across the country, including Karachi, in October, despite more than 76 per cent power generation coming from cheaper domestic sources. Testifying before a public hearing, Rehan Akhtar, chief executive officer (CEO) of the Central Power Purchasing Agency (CPPA) — a government subsidiary — said the fuel cost in August increased by 19 paise per unit because lower-than-expected hydropower generation forced the use of expensive fuels. Flooding had constrained water discharges from reservoirs, reducing hydropower output. He explained that a negative fuel price adjustment of Rs1.79 per unit in the September billing cycle would expire, resulting in a net increase of Rs1.98 per unit in October bills. The public hearing was conducted by the National Electric Power Regulatory Authority (Nepra) on the request of CPPA, which acts as a commercial agent for power distribution companies (Discos).