Increase in electricity bills imminent as CPPA contemplates rise in fuel costs
The Central Power Purchasing Agency-Guarantee (CPPA-G) has petitioned the National Electric Power Regulatory Authority (Nepra) for an increase of Rs0.1911 per unit in power bills under the Fuel Charges Adjustment (FCA) for August 2025. This request comes as a result of the gap between the reference and actual cost of power generation.
The total power generation in August was 14,218 gigawatt hours (GWh), costing Rs103.4 billion, or Rs7.27 per unit. Hydropower was the largest contributor, generating 5,517 GWh or nearly 39% of the total mix at no fuel cost. RLNG-based plants produced 2,180 GWh (15.3%) at a steep Rs21.73 per unit, while coal contributed 18% overall, with local coal at Rs12.01 per unit and imported coal at Rs14.07. Indigenous gas supplied 7.3% at Rs13.43, and residual fuel oil contributed less than 1% at Rs33.01 per unit. Nuclear plants added 2,145 GWh (15%) at a low Rs2.19 per unit.
Imports from Iran, though only 78 GWh, carried the highest price tag at Rs41.09 per unit. On the other hand, K-Electric customers will also be subject to FCA adjustments under federal policy guidelines.
The CPPA-G represents ex-Wapda distribution companies (Discos) and K-Electric in this request. If the request for the hike is approved, an additional burden of Rs3 billion may be imposed on consumers across the country.
The reference fuel charges for August were Rs7.3149 per unit, while the actual cost of power generation averaged Rs7.5059 per unit. The CPPA-G argues that the gap between the reference and actual cost must be recovered from consumers through the FCA mechanism.
A public hearing for this matter is scheduled for Sept 29 by Nepra. No new information about the request for an increase in power bills or its potential impact on consumers was provided in this paragraph. The hearing will provide an opportunity for stakeholders to voice their concerns and for Nepra to make a decision on the matter.
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