Consumers of all power distribution companies (Discos) are set to enjoy a relief of up to Rs2 per unit in electricity rates for January 2025, thanks to a fuel adjustment. However, this reduction will not apply to consumers of K-Electric (KE).
The reduction in electricity rates stems from fluctuations in energy prices for power generation plants. The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has submitted a request to the National Electric Power Regulatory Authority (NEPRA), seeking a Rs2 per unit decrease in electricity charges under the Fuel Charges Adjustment (FCA) for January 2025.
NEPRA has scheduled a public hearing on February 27, 2025, to evaluate the proposed adjustment for Ex-WAPDA Distribution Companies (XWDISCOs).
According to CPPA-G's petition, the actual fuel cost for power generation in January 2025 was lower than the reference fuel charges, justifying the downward revision.
The power generation mix for the month was dominated by hydropower, nuclear energy, and Re-Gasified Liquefied Natural Gas (RLNG), while a smaller portion of electricity was generated from local and imported coal, furnace oil, and renewable sources such as wind, solar, and bagasse.
Hydropower contributed 10.63% to the total electricity generation, while local coal accounted for 15.56%, with a cost of Rs12.54 per unit. Imported coal, despite a lower share of 8.53%, was significantly more expensive at Rs20.96 per unit.
The share of RLNG stood at 18.92%, costing Rs22.47 per unit, while furnace oil-based generation, though minimal at 1.34%, had the highest cost at Rs30.34 per unit. Nuclear energy remained the cheapest source, covering 26.61% of the generation mix at just Rs1.81 per unit. Additionally, electricity imported from Iran, constituting 0.41% of the total supply, came at a cost of Rs26.34 per unit.
The total energy delivered to DISCOs stood at 7,816 GWh, with an average fuel cost of Rs11.008 per unit, which is Rs2 lower than the reference fuel cost of Rs13.01 per unit. If approved, this reduction is expected to provide much-needed relief to consumers, particularly amid the ongoing issue of high electricity tariffs.
The final decision on the proposed tariff adjustment will be made following the public hearing at NEPRA, where stakeholders and consumers will have the opportunity to raise objections and present their views.
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