Electricity consumers in Pakistan are set to face a tariff increase of Rs1.98 per unit in October, following the end of the negative Fuel Cost Adjustment (FCA) for July. Officials from the Power Division explained that while the negative FCA of Rs1.79 per unit for July will end, a positive FCA of Re0.19 per unit for August will be added to October bills.
The net impact of these adjustments will result in the Rs1.98 per unit increase for electricity consumers. The Power Division briefed the National Electric Power Regulatory Authority (NEPRA) during a public hearing on the CPPA-G petition regarding the monthly FCA for August 2025.
According to the CPPA-G petition, the reference fuel charges for August were Rs7.3149 per unit, while the actual generation cost averaged Rs7.5059 per unit. NEPRA was requested to allow distribution companies (DISCOs), including KE, to collect an additional Re0.1911 per kWh. The positive FCA will generate an additional Rs2.62 billion burden on consumers during October.
Consumers raised concerns during the NEPRA hearing, noting that a general sales tax of approximately Re0.60 per unit is applied on the Rs3.23 per unit surcharge. This surcharge is intended to repay Rs1,225 billion in loans obtained under the financing facility agreement for reducing circular debt. Officials noted that the use of Re0.60 GST from the surcharge may shorten the loan repayment period from six years to five.
Industrial consumers expressed worries over rising electricity costs, stating that tariffs have jumped from Rs29 to Rs35 per unit following the end of the Prime Minister’s relief package. The CPPA-G official highlighted that reduced hydropower generation due to lower water inflows during August contributed to the need for increased generation from imported coal and RLNG.
The Power Division clarified that flood-affected areas will have their bills paid by the federal government, ensuring that consumers in these regions are exempt from the October tariff increase.
The combined effect of ending the negative FCA and adding the positive FCA means that consumers will see Rs1.98 per unit added to their electricity bills in October.
In other news read more about: Nepra Approves Rs7.12 Electricity Base Tariff Increase
