Electricity Cost Down by Rs1.69 Nationwide

Power consumers likely to find relief of Rs1.6911 per unit on account of fuel charges adjustment (FCA) for the month of July 2025.

The National Electric Power Regulatory Authority will hold a public hearing on August 28, 2025, to review a request for a cut in electricity fuel charges for July. The Central Power Purchasing Agency Guarantee Limited has asked Nepra to reduce the fuel charges adjustment by Rs1.6911 per unit from the approved reference rate of Rs9.8758 per unit. If approved, this change will give relief to electricity users of ex-WAPDA distribution companies in their upcoming bills.

According to CPPA-G, fuel costs in July were lower than expected. During the month, a total of 14123 gigawatt-hours of electricity was produced. Hydropower contributed 40 percent of the total generation, while local and imported coal made up around 26 percent. Gas-based plants generated 8 percent, RLNG plants provided 13 percent, and nuclear power added more than 17 percent. Wind and solar energy together contributed about 5 percent, while electricity imported from Iran was 0.25 percent. After transmission losses of nearly 3 percent, 13666 gigawatt-hours were supplied to distribution companies.

The Ministry of Energy has also issued new policy guidelines approved by the Economic Coordination Committee on August 19, 2025. These guidelines direct Nepra to apply the same fuel charges adjustment to K-Electric customers as to other distribution companies. Any difference in rates will be covered through subsidy or cross-subsidy. This uniform policy has been in place since June 2025, charged to bills in August. Nepra has invited all stakeholders to attend the hearing and share feedback. The final decision could bring much-needed relief to electricity consumers facing high energy costs.