Preparations are being carried out to place an additional burden of billions of rupees on electricity consumers.

The Central Power Purchasing Agency (CPPA) has filed a request with Nepra for fuel price adjustment for the month of April. The regulatory body will hear the request on May 30. If the application is approved, there is a possibility that electricity will be expensive by Rs3.49 per unit for a month.

Approval of the request will result in an additional burden of Rs34 billion on power consumers.

It has been stated in the petition that no electricity was generated from furnace oil and diesel in April, while electricity generation from hydel sources remained at 22.96%, local coal 10.19%, and local gas was 11.28% in a month.

In the application, the petitioners adopted the stance that 11.28% of electricity was generated from local gas. In April, electricity generation from imported LNG was around 25%, while that from nuclear fuel was 23.64%.

Also Read: Ogra refuses increase in gas price, recommends 10% reduction

In a significant development for gas consumers, the Oil and Gas Regulatory Authority (OGRA) declared the demands of both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) to increase gas prices illegal.

This decision comes as a relief to consumers, with OGRA recommending to the SNGPL a reduction in gas prices from July 1.

OGRA has recommended a 10% reduction in gas prices for SNGPL, bringing the new average tariff to Rs1,636 per million British thermal units (mmbtu). This represents a decrease of Rs179.17.

The final notification for this reduction will be issued after consultation with the federal government. SNGPL had reported an impact of Rs862.61 per mmbtu due to the rupee exchange rate, but OGRA has sanctioned Rs580.59.

For SSGCL, OGRA has fixed the rate at Rs1,401.25 per mmbtu, reflecting a 4% reduction. The notification of this decrease has already been issued.