The cost of power generation in Pakistan witnessed a substantial jump of nearly 20% in November 2023.

The cost in November stood at an average of Rs7.17/KWh compared with an average cost of Rs5.99/KWh in the same period of the previous year, an increase of 19.7% YoY, said brokerage house Arif Habib Limited (AHL) on Wednesday.

“On a yearly basis, the increase in fuel cost was witnessed mainly due to a decline in nuclear, wind and, solar-based generation,” said the brokerage house.

“Additionally, the fuel cost for local coal-based generation increased by 55% YoY. Along with this, the fuel cost for Regasified Liquid Natural Gas (RLNG) and gas-based also increased by 17% YoY and 38% YoY, respectively,” it added.

Pakistan’s power generation cost declines over 8% in October

The increase comes as rising electricity bills have become a headache for the country’s populace, who are already feeling the pinch of high inflation and slow economic activity.

However, on a monthly basis, the cost of power generation has decreased 13.2%, as compared to an average cost of Rs8.26 in October.

Meanwhile, power generation in the country clocked in at 7,547 GWh (10,482 MW) in November 2023, 9.8% lower compared to the same period last year.

Back in November 2022, power generation stood at 8,367 GWh.

The year-on-year (YoY) decrease in power generation comes on the back of a decline in power generation from nuclear, which stood at 1,572 GWh during November 2023, down by 32.8% YoY, said AHL.

Apart from nuclear, the YoY decrease was attributed to a decline in RLNG (21.1%), gas (41.5%), and wind (6.2%).

On a monthly basis, power generation decreased by 21.2%, as compared to 9,572 GWh registered in October.

During 5MFY24, power generation increased by 1.8% YoY to 61,258 GWh (compared to 60,153 GWh during 5MFY23.

In November, hydel was the leading source of power generation, accounting for 36.5% of the generation mix, to become the largest source of electricity generation in the country. Followed by nuclear, which accounted for 20.8% of the overall generation, followed by local coal which accounted for 13.1% of the power generation share.

Among renewables, wind, solar and bagasse generation amounted to 2%, 0.7% and 0.4% of the generation.