Unusual RLNG price drives up electricity cost
ISLAMABAD: The cost of regasified liquefied natural gas (RLNG)-based power generation surged by record 242 per cent to Rs47.4 per unit in July, from less than Rs14 in April, after the government purchased five expensive cargoes from the spot market in the month due to the suspension of supplies from Qatar following the US-Iran war. Chiefly because of LNG factor, the power companies have sought a…
The cost of regasified liquefied natural gas (RLNG)-based power generation in Pakistan surged by an unprecedented 242% in July, reaching an all-time high of Rs47.4 per unit after the government purchased five expensive cargoes from the spot market due to the suspension of supplies from Qatar following the US-Iran war. This significant increase has led power companies to seek a Rs2.52 per unit rise in fuel cost adjustment (FCA) to be reflected in consumers' September bills, despite 73% of the generation coming from cheaper domestic sources.
Nepra has called for a public hearing on Aug 27 to evaluate the justification of the Rs36.5bn additional demand from power companies, with a potential Rs2.52 per unit impact.
Brief written by urgent.news from Dawn Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
