Consumers brace for Rs1.27-per-unit hike

Electricity consumers are set to face a tariff increase of up to Rs1.27 per unit on account of fuel cost adjustment for April 2025 as prices of fuels used in power generation increased.

The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a petition to the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs1.27 per unit in electricity tariff under the monthly fuel charges adjustment mechanism. If approved, the tariff hike will put a total burden of Rs13 billion on consumers. The regulator will hold a public hearing on May 29.

According to data submitted to Nepra, hydel generation rose 11.4% to 2,306 gigawatt hours (GWh) in April 2025 as compared to 2,070 GWh in April 2024. Power generation by local coal-fired plants stood at 1,525 GWh, which constituted 14.51% of total production at a price of Rs11.2115 per unit against generation of 881 GWh in April 2024 at Rs15.2284 per unit. It showed a hike of 73% in local coal-based electricity production.

By consuming imported coal, power plants produced 1,054 GWh at Rs16.6062 per unit, accounting for 10.02% of total production. In April last year, only 21 GWh had been produced at a price of Rs22.8405 per unit.

Power generation through the residual fuel oil totaled only 83 GWh at Rs28.7679 per unit. Electricity generation by gas-based plants hit 842 GWh, constituting 8.01% of total production at Rs11.8166 per unit. In comparison, 975 GWh had been produced in April 2024 at a price of Rs13.2535 per unit.

Re-gasified liquefied natural gas (RLNG)-based power plants produced 2,157 GWh, having a 20.52% share in total generation at Rs24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs2.1038 per unit, contributing 17.91% to total generation, against the production of 2,043 GWh in April 2024, which exhibited a decrease of 7.9%.

Electricity import from Iran came in at 32 GWh at Rs25.3465 per unit while power generation from bagasse was recorded at 37 GWh at a price of Rs5.9822 per unit.

Wind mills produced 478 GWh of electricity, accounting for 4.55% of total generation, while solar panels produced 115 GWh, which contributed 1.10% to total generation.

Total energy generation reached 10,513 GWh in April 2025 as compared to 8,639 GWh in April 2024, showing an increase of 22.9% at a basket price of Rs9.9197 per unit. The total cost of energy was calculated at Rs104.288 billion. However, with the proposed previous negative adjustment of Rs11.397 billion and the sale of IPPs' electricity at negative Rs1.648 billion, the net electricity delivered to distribution companies (DISCOs) stood at 10,196 GWh at Rs8.9488 per unit with the total price of Rs91.243 billion.

The electricity supply of 10,196 GWh was 21.7% higher than the net 8,375 GWh delivered in the corresponding month of 2024.

In its petition, the CPPA-G argued that since the reference fuel cost was Rs7.6803 per unit for April 2025, a positive adjustment of Rs1.2685 per unit should be approved as actual fuel charges came in at Rs8.9488 per unit.