Electricity rates would likely to go up by Rs 1.20 per unit in March due to rise in generational cost. Quoting sources of Ministry of Water and Power, a private news channel reported that the loan obtained by Pepco has been reached Rs 91 billion due to non-payment to PSO. As a result, oil refineries have reduced supply of furnace oil by 60 percent.
Thermal power plants are using diesel owing to shortage of furnace oil, which have increased cost of power generation. It may be mentioned that power tariff has increased by 45 percent since October last year till January 2010.