In the coming months, Pakistanis might notice their electricity bills increasing by Rs5 per unit. This request, made by the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (Nepra), could mean more expenses for everyone. Let’s break it down in simple terms.
What’s Happening?
The CPPA wants to raise electricity prices because of higher costs in February. Nepra will decide on March 28 whether to approve the increase. If they do, it could mean an extra burden of over Rs40 billion for consumers across the country.
Where Does Our Electricity Come From?
To understand why prices are going up, we need to know where our electricity comes from:
- Hydropower: About a quarter of our electricity comes from water sources.
- Coal: We also use coal, both from Pakistan and imported, for about 15% of our electricity.
- Gas and LNG: Gas and liquefied natural gas (LNG) make up over 30% of our electricity.
- Nuclear: Nuclear energy provides about a quarter of our electricity.
Why Gas Prices Matter Too
It’s not just electricity bills that might rise. The Sui Southern Gas Company (SSGC) also wants to increase gas prices. If approved, this could add an extra Rs79.63 billion burden on gas consumers nationwide.
Why Are Prices Going Up?
Both electricity and gas companies say they need more money to cover their costs. They’re expecting a big shortfall in revenue for the next year, partly because of local gas sales, transactions with Re-gasified Liquefied Natural Gas (RLNG), and renovation expenses.
What to Do Next
Keep an eye on the news to see if Nepra approves the electricity price increase. If they do, it might be time to start thinking about how to manage higher bills. Understanding where our electricity comes from and why prices are going up can help us make smarter decisions about our energy use.
