The Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of Rs2.65 per unit in the power tariff due to fuel price adjustment.

In September, 36.2% of electricity was generated from hydropower, 17.05% from coal, 8.9% from gas and 18.9% from imported LNG, the CPPA said in its plea.

However, the cost of electricity generated from the furnace oil was Rs 19.23 per unit in the month, it added.

NEPRA has fixed October 27 as the date to hold a hearing on the CPPA’s application.

Earlier on October 15, the government had decided to increase the power tariff keeping in view the soaring circular debt of Pakistan, Federal Minister for Energy Hammad Azhar had said.

Speaking during a press conference in Islamabad along with the State Minister for Information and Broadcasting Farrukh Habib, Azhar had said that this increase in power tariff of Rs1.39 will be applicable from November 1.

"We now have the capacity to generate enough electricity, therefore we want to increase the demand. We introduced an industrial package last year which has been successful as we have seen a 15% increase in demand," the minister had said.

"Meanwhile, we have also seen a 6-7% increase in the demand for electricity as the peak hours for the industrial sector have been removed."

The minister had said that keeping in view the success of this package, the government decided to introduce another package — known as the seasonal electricity package — under which consumers who use an extra unit compared to their last year's usage will get an extra discount.

Shedding light on further steps, he had said that the government has closed old generation companies (gencos), while the National Electric Power Regulatory Authority (NEPRA) has also revised its target from 15% to 13%.