National Electric Power Regulatory Authority (NEPRA) has approved Rs 4.34 per unit hike in electricity prices.

Sources said that Central Power Purchasing Agency had asked for Rs 4.69 hike per unit in electricity prices; however, the regulator allowed increase of Rs 4.34 per unit.

Sources said that the hike was approved under the head of Fuel Charge Adjustment (FCA). Earlier CPPA had in its application had stated that production cost of a unit stood at Rs 10.98 per unit during July while advance fuel charges stood at Rs 6.48 per unit.

The price hike is likely to cost the consumers about Rs 35 billion.

CPPA said that last month 35.17 percent of eletrcity was produced from water, 12.17 percent from coal, 1.46 percent from diesel and 6.46 percent from furnace oil.

CPPA said that electricity produced from diesel cost them Rs 27.88 per unit while power generated from furnace oil cost Rs 35.69 and power produced from LNG cost Rs 28.28 per unit.

On the other hand, local gas produced nearly 10.36 percent of electricity while imported LNG amounted for 14.98 percent of electricity production.