ISLAMABAD: Electricity bills in Pakistan may rise in October following a request by the Central Power Purchasing Agency-Guarantee (CPPA-G) to the National Electric Power Regulatory Authority (NEPRA). The agency has sought approval to collect an additional Rs 0.1911 per unit from consumers under the Fuel Cost Adjustment (FCA) for August 2025.
The move aims to cover the gap between actual power production costs and the reference fuel charges. According to CPPA-G, reference fuel costs in August were Rs7.3149 per unit, while the actual cost of power generation averaged Rs7.5059 per unit. This shortfall, the agency argues, should be recovered through the FCA mechanism.
If NEPRA approves the request, consumers across the country could bear an extra financial burden of around Rs3 billion. The public hearing on this matter is scheduled for September 29. Under federal policy, the FCA adjustment for ex-Wapda distribution companies will also apply to K-Electric customers, ensuring consistency across all electricity providers.
Data from CPPA-G shows that total power generation in August reached 14,218 gigawatt hours (GWh), costing Rs103.4 billion or Rs7.27 per unit.
After accounting for transmission losses, prior adjustments, and Independent Power Producer (IPP) sales, the net supply to distribution companies stood at 13,715 GWh at Rs7.51 per unit.
Hydropower remained the largest contributor, generating 5,517 GWh or 39% of total electricity at no fuel cost. Nuclear plants added 2,145 GWh (15%) at a low Rs2.19 per unit. RLNG-based plants, however, produced 2,180 GWh (15.3%) at a high Rs21.73 per unit.
Coal accounted for 18% of the energy mix, with local coal costing Rs12.01 per unit and imported coal Rs14.07. Indigenous gas supplied 7.3% at Rs13.43 per unit, while residual fuel oil, less than 1%, cost Rs33.01 per unit.
Electricity imports from Iran, though minimal at 78 GWh, carried the highest cost of Rs41.09 per unit.
The proposed adjustment under the Fuel Cost Adjustment (FCA) is intended to maintain financial stability for power producers while reflecting actual generation costs. Consumers are advised to monitor updates from NEPRA following the public hearing.
