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Aftab Maken
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on the Fuel Charges Adjustment (FCA) for July 2025 on August 28 in Islamabad. The decision follows a request by the Central Power Purchasing Agency Guarantee Limited (CPPA-G), which has recommended a reduction in electricity costs based on July’s generation expenses.
According to data submitted by CPPA-G, the total cost of power generation in July stood at Rs 109,894 million, with an average cost of Rs 7.7811 per unit. During this period, Ex-WAPDA Distribution Companies (XWDISCOs) received 13,666 GWh of electricity for Rs 8.1848 per unit. The agency has proposed that consumers should be given a relief of Rs1.6911 per unit compared to the reference fuel charges for July, bringing the rate to Rs9.8758 per unit.
In terms of generation sources, hydropower accounted for the largest share at 40.13%, followed by RLNG at 17.26%, local coal at 10.64%, imported coal at 8.07%, and gas at 7.74%. Electricity imported from Iran contributed 0.25 percent, with a unit cost of Rs24.1492—significantly higher than other sources.
The Ministry of Energy had referred the matter to the Economic Coordination Committee (ECC), which reviewed it on August 19. It was directed that, to maintain uniform tariffs nationwide, the FCA should also be applied to K-Electric on the same basis. The government would cover any difference in the FCA determined for K-Electric through subsidy or cross-subsidy.
NEPRA stated that the uniform FCA application will begin from June 2025 and will be reflected in electricity bills from August 2025. The Ministry of Energy also urged NEPRA to expedite the process given its urgency, so consumers could receive relief without delay.
Energy sector experts believe that if NEPRA approves CPPA-G’s recommendations, electricity bills for July could see a reduction, bringing relief to consumers. However, they cautioned that reliance on gas and imported fuels means cost fluctuations are likely to continue in the coming months.
It is worth noting that NEPRA has previously provided temporary relief to consumers through fuel price adjustments. However, the lack of structural reforms in the energy sector has kept the average cost of electricity at a relatively high level. Experts have advised the government to focus more on hydropower and renewable energy projects to reduce dependency on imported fuels.
The final decision will be announced after the hearing on August 28 through NEPRA’s official notification, which will directly impact electricity bills for consumers across the country.
