The price of electricity is expected to see a surge of Rs5 per unit for a month, as the Central Power Purchasing Agency (CPPA) has submitted a formal request to the National Electric Power Regulatory Authority (Nepra) in this regard.

The request for the price hike has been made in terms of monthly fuel adjustment for February, for which Nepra is set to conduct a hearing on March 28. If approved, the updated electricity tariff will impose a significant financial burden on consumers, estimated to exceed Rs40 billion.

According to CPPA's data, 6.876 billion units of electricity were sold in February, with varying contributions from different energy sources.

The CPPA's application reveals details of the composition of electricity generation during February. A substantial portion of the electricity, approximately 24.77%, was generated from water sources, highlighting the significance of hydropower in Pakistan's energy mix. Additionally, local coal accounted for 13.94% of electricity generation, while imported coal contributed 1.89%.

Also Read: SSGC seeks Ogra approval for yet another gas price hike

Moreover, local gas and imported liquefied natural gas (LNG) accounted for 11.04% and 20.33% of electricity generation, respectively. Nuclear fuel contributed 23.29% to the overall electricity generation in February.

On March 17, the Sui Southern Gas Company (SSGC) had also submitted a request to the Oil and Gas Regulatory Authority (Ogra) seeking a substantial increase in gas prices, effective from July 1.

According to the proposal, SSGC urged Ogra to raise gas prices by Rs324 per million British thermal units (mmbtu), aiming to set a new average price of Rs1740.80 per mmbtu. If approved, this hike would impose a staggering burden of Rs79.63 billion on gas consumers across the country.

Highlighting the financial rationale behind the request, SSGC has pointed out a projected revenue shortfall of Rs79.63 billion for the upcoming fiscal year.

Of this deficit, Rs56.69 billion is attributed to local gas sales, while Rs22 billion is linked to Re-gasified Liquefied Natural Gas (RLNG) transactions. Additionally, a renovation shortfall of Rs935 million has been estimated.