Power tariff may see slight increase

ISLAMABAD:

Consumers are likely to face increase in electricity rates up to Rs0.91 per unit on account of fuel adjustment for the month of August 2025.

NEPRA will hold a public hearing on September 29, regarding a petition filed by the Central Power Purchasing Agency Guarantee Limited (CPPA-G).

CPPA-G has sought an increase in fuel cost adjustment (FCA) charges for August 2025 up to Rs0.1911 per kilowatt-hour (kWh) over the reference fuel price due to variations in generation costs.

The overall fuel cost of generation averaged Rs7.5059/kWh, compared with the notified reference price of Rs7.3149/kWh.

After accounting for transmission losses, sales to IPPs, and prior adjustments, the net cost delivered to DISCOs was Rs7.5059/kWh. Based on this calculation, CPPA-G has requested an upward adjustment of Rs0.1911/kWh in the monthly FCA.

Coal-based power provided a significant portion of supply, with local coal producing 1,442 GWh at a cost of Rs12.0146/kWh and imported coal generating 1,138 GWh at Rs14.0753/kWh. Nuclear energy, which accounted for 2,145 GWh or 15.09 percent of total generation, delivered electricity at a comparatively low cost of Rs2.1950/kWh. Imported electricity from Iran, though a minor contributor at 78 GWh, carried a much higher price tag of Rs41.0948/kWh.

Residual fuel oil (RFO), despite its limited share of 92 GWh (0.65%), had the most expensive unit cost among conventional fuels at Rs33.0064/kWh. High-speed diesel registered no generation during the month.

Fuel charge adjustments are carried out under Section 31(7) of the NEPRA Act of 1997, The notice highlights that the federal government’s policy guidelines on uniform fuel cost adjustments require that charges applicable to DISCOs are also extended to K-Electric consumers, ensuring parity across country.