ISLAMABAD: Electricity consumers may soon face a slight increase in power bills, with rates expected to go up by as much as Rs0.91 per unit under the monthly fuel adjustment for August 2025.
The National Electric Power Regulatory Authority (NEPRA) is set to hold a public hearing on September 29 to review a petition filed by the Central Power Purchasing Agency Guarantee Limited (CPPA-G). The agency has requested an upward adjustment in the fuel cost adjustment (FCA), citing higher generation costs than the reference benchmark.
According to data submitted, the average fuel cost of power generation for August stood at Rs7.5059 per kilowatt-hour (kWh), slightly above the notified reference price of Rs7.3149/kWh. After accounting for system losses, prior adjustments, and power purchases from independent producers, CPPA-G calculated an increase of Rs0.1911/kWh in the FCA.
Breakdown of the generation mix shows a varied cost pattern. Local coal-fired plants generated 1,442 gigawatt-hours (GWh) at Rs12.0146/kWh, while imported coal contributed 1,138 GWh at an even higher Rs14.0753/kWh. Nuclear power, however, remained the cheapest large-scale source, producing 2,145 GWh about 15 percent of total supply at just Rs2.1950/kWh.
On the expensive end, imported electricity from Iran, though contributing only 78 GWh, came at a steep Rs41.0948/kWh. Residual fuel oil (RFO) plants produced 92 GWh at Rs33.0064/kWh, making it the costliest conventional source for the month. No electricity was generated using high-speed diesel.
Fuel charge adjustments are mandated under Section 31(7) of the NEPRA Act of 1997 and are a routine mechanism to pass on actual generation costs to consumers. As per government policy, any FCA approved for distribution companies (DISCOs) will also be applied to K-Electric consumers to ensure uniformity in charges across the country.
If approved, the adjustment will reflect in upcoming consumer bills, adding further pressure at a time when households are already grappling with rising living costs.
