Consumers brace for tariff hike

Consumers are likely to bear an increase of up to Rs0.48 per unit in electricity tariffs on account of fuel cost adjustment for December 2025. Earlier, the reference price had been set at Rs9.14 per unit but the actual price came in at a higher level at Rs9.62 per unit, registering a rise of Rs0.48.

Central Power Purchasing Agency Guarantee Limited (CPPA-G) has filed a request with the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs0.4781 per kilowatt-hour (kWh) compared to the reference fuel cost.

CPPA-G estimated the fuel charges for December at Rs9.1419 per kWh but the adjustment will raise the applicable cost to Rs9.6200 per kWh.

Data provided by CPPA-G shows that the total energy generation reached 8,487 gigawatt hours (GWh) during December. The net energy delivered to the distribution companies (DISCOs) stood at 8,208 GWh after accounting for losses and adjustments. Transmission losses were reported at 259 GWh, comprising 3.05% of the energy production.

Hydel power contributed 1,534 GWh, representing 18.07% of the monthly energy mix. Local coal-fired plants generated 1,187 GWh, accounting for 13.99% of the total output. Imported coal plants produced 860 GWh, which contributed 10.13%.

Gas-based power generation reached 951 GWh, or 11.20% of the energy mix. Re-gasified liquefied natural gas (RLNG) based generation stood at 1,464 GWh, consisting of 17.24% of the total. Nuclear power emerged as the largest contributor with 2,126 GWh, or 25.05%.

Electricity imports from Iran added 33 GWh, accounting for 0.39%. Wind energy supplied 162 GWh, or 1.91% of the total generation. Bagasse-based plants produced 97 GWh, making up 1.14%, while solar power contributed 74 GWh, or 0.87% of the total output.

RLNG generation carried the highest fuel cost at Rs20.5457 per kWh during the month under review. Imported coal followed with a cost of Rs14.3088 per kWh, gas-based electricity with Rs13.8030 per kWh and local coal-fired generation with Rs13.1286 per kWh.

Nuclear power generation remained the cheapest source, with fuel cost reported at Rs2.3009 per kWh. Bagasse-based electricity carried a fuel cost of Rs10.3937 per kWh while electricity imports from Iran were priced at Rs21.9685 per kWh.

Total fuel cost for energy production during December was calculated at Rs77.706 billion. After previous adjustments of Rs2.398 billion and accounting for sales to the independent power producers, the net fuel cost of energy delivered to DISCOs reached Rs78.957 billion. This translated into average fuel cost of Rs9.6200 per kWh.

NEPRA has scheduled a public hearing on January 29 to consider the request for electricity price hike on account of fuel cost adjustment.