Hike in power bills on cards as CPPA eyes fuel cost increase

By Our Correspondent Saif ur Rehman
September 18, 2025

Hike aims to address difference in production cost and fuel charges; consumers might face additional burden of Rs3bn

A power technician while fixing electric meters in Pakistan. — AFP/File

ISLAMABAD: Electricity consumers across the country are likely to face higher bills in October after the Central Power Purchasing Agency-Guarantee (CPPA-G) requested the National Electric Power Regulatory Authority (Nepra) to approve additional collection of Rs0.1911 per unit from consumers, The News reported on Thursday.

The agency’s demand is under the monthly fuel charges adjustment (FCA) for August 2025. Nepra has scheduled a public hearing on Sept 29 to decide the matter.

In its petition, filed on behalf of ex-Wapda distribution companies (Discos) and K-Electric, the CPPA-G said the reference fuel charges for August were Rs7.3149 per unit, while the actual cost of power generation averaged Rs7.5059 per unit.

The gap, it argued, must be recovered from consumers through the FCA mechanism. As per the sources, if the request for hike is approved, an additional burden of Rs3 billion may be imposed on consumers across the country.

Under federal policy guidelines, FCA for ex-Wapda Discos will also apply to K-Electric customers, ensuring uniformity across distribution companies.

According to data provided by CPPA-G, total power generation in August stood at 14,218 gigawatt hours (GWh), costing Rs103.4 billion, or Rs7.27 per unit. After accounting for transmission losses, IPP sales and prior adjustments, the net supply to Discos was 13,715 GWh at Rs7.51 per unit, prompting the Rs0.1911 per unit adjustment request.

Hydropower was the largest contributor, generating 5,517 GWh or nearly 39% of the total mix at no fuel cost. Nuclear plants added 2,145 GWh (15%) at a low Rs2.19 per unit, while RLNG-based plants produced 2,180 GWh (15.3%) at a steep Rs21.73 per unit. Coal contributed 18% overall, with local coal at Rs12.01 per unit and imported coal at Rs14.07.

Indigenous gas supplied 7.3% at Rs13.43, while costly residual fuel oil contributed less than 1% at Rs33.01 per unit. Imports from Iran, though only 78 GWh, carried the highest price tag at Rs41.09 per unit.


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