Power Division projects Rs2.56 per unit increase in Nov bills, says bigger hike averted due to load management

ISLAMABAD: The Power Division on Thursday projected a Rs2. 56 per unit increase in November bills for electricity consumers on account of fuel cost adjustment (FCA) for September, citing the use of expensive fuel for electricity generation. The increase is expected to bring in around Rs33bn for the Power Division, which said in a statement that the additional FCA could have been significantly higher, by around Rs3. 44 per unit, but targeted load shedding helped contain the increase. “The Ministry of Energy (Power Division) has averted a potential Rs5-6 per unit hike in the September fuel price adjustment (FPA) through timely measures, including targeted load management, limiting the projected adjustment to Rs2. 56 per unit despite rising international fuel prices and constraints on LNG supplies,” the statement said.

“Targeted load management and other measures helped limit the impact of expensive fuels used for power generation, saving consumers from an additional burden of up to Rs3. 44 per unit,” the Power Division said. It added that targeted load management for approximately two to two-and-a-half hours during September helped reduce reliance on costly alternative fuels, including furnace oil and high-speed diesel, and contained the anticipated increase in the FPA. The division maintained the provision of imported re-gasified liquefied natural gas (RLNG) for power generation at domestic gas prices had further eased the burden on consumers by 83 paisa per unit. However, it noted that international fuel prices had risen sharply amid the Middle East conflict and disruptions to fuel supply chains following the closure of the Strait of Hormuz. Against this backdrop, despite Qatar’s declaration of force majeure, Pakistan continued efforts to meet its RLNG requirements through…