Power tariff likely to be cut by Rs0.72

Total relief estimated at Rs5.6b; NEPRA concludes hearing on fuel cost revision

ISLAMABAD:

Electricity consumers are set to get a relief of Rs0.72 per unit on account of fuel cost adjustment for November 2025.

Power-sector regulator, the National Electric Power Regulatory Authority (Nepra), on Wednesday held a hearing on the Central Power Purchasing Agency's (CPPA) request for refunding Rs0.72 per unit to consumers in January bills, which amounted to a total relief of Rs5.6 billion. In November, the power cost was low, while the consumers were charged higher rates.

The hearing, chaired by Nepra Chairman Waseem Mukhtar, concluded after reviewing the CPPA's application and related submissions. Final decision has been reserved and will be announced later.

According to the CPPA, the proposed reduction, if approved, will benefit consumers nationwide, including Karachi, in January bills, as part of the monthly fuel price adjustment under the government's policy guidelines. Nepra has also conducted a survey in Karachi to assess the impact of load-shedding and the local power supply issues.

Officials of the regulatory authority said the decision could provide a relief of up to Rs6 billion, adding that future meetings may include the Power Division to finalise related budget allocations.

Nepra member Masood Anwar noted that the regulator had not approved the budget for Power Planning and Monitoring Company, which incurred expenses of Rs1.88 billion from 2021-22 to 2023-24.

Official data shows that total electricity generation in November stood at 8,050 gigawatt hours (GWh), with overall cost of Rs50.09 billion, translating into Rs6.22 per unit. After adjusting for transmission losses, independent power producers' (IPPs) sales and previous adjustments, the net electricity supplied to distribution companies (DISCOs) was 7,813 GWh, costing Rs48.14 billion, or Rs6.162 per unit. This figure also includes Rs0.037 per unit in prior refund adjustments.

Hydroelectric power remained the backbone of the national grid, contributing 3,153 GWh, or 39.16% of the total electricity mix, in November. Nuclear power followed with 2,031 GWh (25.23%) at a cost of Rs2.27 per unit.

Among thermal sources, re-gasified liquefied natural gas (RLNG)-based plants generated 696 GWh (8.64%) but at a steep cost of Rs21.58 per unit. Local coal-fired power plants added 752 GWh (9.34%) at Rs17.77 per unit, while imported coal-run plants contributed 407 GWh (5.06%) at Rs14.14 per unit. Pakistan also imported 35 GWh of electricity from Iran at a cost of Rs22.57 per unit. Indigenous gas-based plants produced 680 GWh (8.44%) at Rs14.34 per unit. Notably, no electricity was generated by using the expensive residual fuel oil or high-speed diesel during the month.

Renewable sources made a modest contribution, with wind power supplying 136 GWh, bagasse-based plants producing 75 GWh at Rs10.84 per unit, while solar plants provided 86 GWh to the national grid.

Under the federal policy guidelines, any approved fuel cost adjustment for ex-Wapda DISCOs will also apply to K-Electric consumers, ensuring a uniform revision across the country.