Power Consumers Likely to Get Rs1.69 Per Unit Relief in September Bills

ISLAMABAD: Electricity users may see their bills drop in September, as state-run power distribution companies (Discos) have requested the National Electric Power Regulatory Authority (Nepra) to approve a refund of Rs1.691 per unit, citing reduced fuel costs for July 2025. The Central Power Purchasing Agency (CPPA), on behalf of the Discos, submitted the petition under the monthly Fuel Charges Adjustment (FCA) mechanism. Nepra has fixed August 28 as the date for a public hearing to review the proposal and verify whether it complies with the economic merit order.

In July, overall electricity generation reached 14,123 gigawatt-hours (GWh) at an average rate of Rs7.781 per unit, amounting to a total fuel expenditure of Rs109.89 billion. After factoring in 2.95% transmission losses, the net supply to Discos was 13,666 GWh, priced at Rs8.1848 per unit. This also included Rs3.883 billion in past-period adjustments, equal to Rs0.275 per unit.

Hydropower remained the leading contributor, producing 5,668 GWh (40.1%) of total generation. RLNG followed with 2,438 GWh (17.26%) at Rs22.03 per unit, while local coal contributed 1,503 GWh (10.64%) at Rs11.347 per unit. Imported coal added 1,140 GWh at Rs14.498 per unit. Nuclear plants supplied 1,405 GWh at a much cheaper Rs2.42 per unit.

Meanwhile, natural gas-based plants generated 1,093 GWh at Rs13.379 per unit, while furnace oil-based generation stood at 108 GWh, but at a much higher cost of Rs31.053 per unit. No electricity was produced from diesel or bagasse. Renewable energy contributed as well, with 592 GWh from wind and 105 GWh from solar sources.

Following the Economic Coordination Committee (ECC) decision on August 19, the Energy Ministry instructed Nepra to ensure uniform FCA rates nationwide, applying equally to both ex-Wapda distribution firms and K-Electric. Any difference between KE’s FCA claims and notified tariffs will be managed through subsidies or cross-subsidies. The uniform FCA policy has been in place since June 2025 and has already been reflected in August billing.