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Consumers may see up to Rs 0.19 per unit increase in October bills due to August fuel cost adjustment.
BeNewz Report
Consumers across Pakistan are likely to face an increase in electricity tariffs by up to Rs 0.19 per unit as the National Electric Power Regulatory Authority (NEPRA) reviews a request for a fuel cost adjustment (FCA) for August 2025. The additional charges, if approved, would reflect in the electricity bills issued in October.
The Central Power Purchasing Agency – Guaranteed (CPPA-G) submitted the request to NEPRA, citing a rise in energy prices used in electricity generation. The agency has proposed an upward adjustment of Rs 0.1911 per kilowatt-hour (kWh), based on the differential between the actual and reference fuel costs during August. The average fuel cost stood at Rs7.5059/kWh against the notified reference price of Rs7.3149/kWh.
The public hearing, held on Monday at NEPRA headquarters and chaired by NEPRA Chairman, included participants from the Ministry of Energy, industry stakeholders, journalists, and members of the public. The power regulator noted that all stakeholder comments had been recorded and that a detailed decision would follow further scrutiny of submitted data.
If approved in full, the proposed adjustment could impose an additional financial burden exceeding Rs3 billion on consumers nationwide. The CPPA-G clarified that the adjustment would be effective for one month only and would apply to all power distribution companies (DISCOs) and K-Electric consumers, excluding lifeline consumers, prepaid users, and electric vehicle charging stations.
Under Section 31(7) of the NEPRA Act of 1997, monthly fuel charge adjustments are permissible to reflect actual changes in generation costs. The proposed hike also aligns with federal policy guidelines aimed at ensuring uniform FCA charges across all consumer categories, including K-Electric.
Industrial consumers have voiced strong opposition to the proposed hike, particularly in light of the recent withdrawal of the Prime Minister’s support package for the sector. Industry representatives warned that the move has already inflated their electricity costs by 10 percent, with rates potentially rising from Rs29 to Rs35 per unit. They also highlighted that power was previously promised at 9 cents per unit, expressing concerns about the growing gap between policy commitments and actual charges.
The fuel mix for August 2025 reveals significant variation in generation costs across different energy sources. Coal-fired generation remained a major contributor, with local coal-based plants producing 1,442 gigawatt-hours (GWh) at Rs12.0146/kWh, and imported coal contributing 1,138 GWh at a higher cost of Rs14.0753/kWh. In contrast, nuclear energy delivered a cost-effective supply of 2,145 GWh at Rs2.1950/kWh, making up 15.09 percent of the overall generation.
Imported electricity from Iran, though accounting for just 78 GWh, registered an exorbitant rate of Rs41.0948/kWh. Similarly, residual fuel oil (RFO), with a minor share of 92 GWh or 0.65 percent of the mix, had the steepest cost among conventional fuels at Rs33.0064/kWh. No electricity was generated using high-speed diesel during the month.
The increasing reliance on costlier fuels like imported coal and RFO, amid a backdrop of global energy market volatility, has intensified pressure on Pakistan’s power sector. Experts have warned that unless structural reforms are introduced, such as optimizing the fuel mix and improving transmission efficiency, recurring tariff hikes could become more frequent and disruptive.
NEPRA’s pending decision is expected to weigh consumer affordability against the pressing need to ensure the financial viability of the power supply chain. With inflation already affecting household budgets and energy costs impacting industrial competitiveness, the verdict could have wide-reaching economic implications.
The power regulator is anticipated to announce its final verdict on the proposed tariff hike after completing its technical and financial assessment of the CPPA-G data.
