Power Generation Cost Witnesses Sharp Rise of 61.5% in A Year

The electricity generation cost per unit (kWh) has precisely increased by up to 61.55 percent in August 2021 as compared to August 2020.

According to official documents submitted by a power purchasing company to National Electric Power Regulatory Authority (NEPRA), the cost of generating electricity from LNG increased by Rs. 6.42 per unit and from diesel increased by Rs. 3.19 per unit in merely one year. 

According to the documents available with ProPakistani, the cost of power generation on diesel, furnace oil, coal, LNG, and gas has gone up. The cost of power per unit from diesel has increased from Rs. 19.43 to Rs. 22.62, while the electricity generated from natural gas reached Rs. 1.3 per unit last month, which is a higher cost compared to the last year.

Similarly, the unit price of electricity from LNG went up from Rs. 7.02 to Rs. 13.44. And, the cost per unit of furnace oil increased from Rs. 12.23 to Rs. 18.24.

Moreover, in the last single year, the cost of generating electricity from coal per unit increased from Rs. 6.03 to Rs. 9.03. The rates of electricity imported from Iran also increased by Rs. 2.14. The import from Iran in August 2020 was at Rs. 10.21 per unit, whereas now it is not being imported even at the rate of Rs. 12.35 per unit.

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Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...

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