Expensive diesel power generation adds to consumers' woes

A document released by the Central Power Purchasing Agency (CPPA) has revealed the details of the power generation costs in December 2023, showing that the most expensive source of electricity was diesel, followed by furnace oil and imported electricity from Iran, reported 24NewsHD TV channel Wednesday.

The document also showed that no electricity was generated from diesel in December 2022 and November 2023, indicating a sudden increase in the reliance on this costly fuel.

The CPPA has requested an increase of Rs 5.62 per unit in the December adjustment, which will further burden the consumers who are already facing high electricity bills.

The document also showed that the cheapest sources of electricity were nuclear energy, biogas, local coal and imported coal, but their share in the power mix was low compared to LNG and diesel.

Last month, electricity generated from diesel cost Rs42.15 per unit.

In December 2023, the electricity generated from furnace oil cost Rs38.55 per unit. During the same period, the cost per unit of imported electricity from Iran was Rs33.13.

Last month, the production cost of electricity from LNG was Rs26.22 per unit. In December, the per unit cost of electricity from imported coal was Rs17.25.

In December, the production cost of electricity from local coal stood at Rs12 33 per unit. In December, a unit of gas-generated electricity cost Rs14.60. Last month, the cost per unit of electricity generated from biogas was around Rs 6. In December, electricity from nuclear energy fell at Rs1.32 per unit.

The document raised questions about the efficiency and transparency of the power sector and the government's policies to ensure affordable and sustainable electricity for the people.

Reporter: Awais Kiyani