Staff Report
ISLAMABAD – Electricity consumers may receive a relief of Rs 0.65 per unit in their bills as the National Electric Power Regulatory Authority (NEPRA) on Wednesday held a public hearing on a petition filed by the Central Power Purchasing Agency (CPPA) seeking a reduction in fuel charges adjustment (FCA) for June 2025.
According to CPPA’s data, the actual generation cost for June stood at Rs 7.68 per unit, against a reference cost of Rs 8.33 per unit. The agency reported that approximately 13.31 billion units of electricity were supplied to distribution companies (DISCOs), resulting in a proposed Rs 8 billion relief to consumers for one month. The adjustment, if approved, will apply to all DISCOs except lifeline customers.
The reduction is driven by lower generation costs across multiple fuel sources, with hydropower contributing 39.36% of total generation in June, followed by RLNG (16.12%), local coal (10.99%), imported coal (10.16%), and nuclear (10.06%). The most expensive electricity was imported from Iran at Rs 22.51 per unit, while solar energy remained cost-free at Rs 0.00 per unit. After accounting for transmission losses of 2.97%, the net electricity supplied to DISCOs was 13,310 GWh.
During the hearing, NEPRA Chairman took serious notice of the absence of Power Division officials and sought detailed data from DISCOs regarding monthly defaults and circular debt levels. He directed that complete financial statistics be submitted at the upcoming quarterly tariff hearing scheduled for August 4.
Industry participants, meanwhile, raised sharp concerns regarding the government’s failure to fully pass on tariff reductions, including the Rs 1.71 per unit benefit announced following increased petroleum levies. They also criticized the rising industrial tariff—now reportedly touching Rs 35 per unit—and questioned inefficient resource allocation, particularly the supply of domestic gas to the Jamshoro power plant instead of more efficient facilities.
The NEPRA case officers responded that gas supply cannot be diverted due to existing arrangements. On the issue of increased tariffs for bagasse-based power plants operated by sugar mills, it was clarified that the adjustment was made to settle previous outstanding payments, not to offer preferential treatment.
Further, officials revealed that the Neelum-Jhelum hydropower project would remain out of the national grid for the next two years, as per information provided by its management.
NEPRA is expected to issue its decision on the FCA petition in the coming days. If approved, consumers could see the revised tariffs reflected in upcoming electricity bills.
