Electricity Consumers in Pakistan Set to Get Relief in September Bills

State-run power distribution companies (Discos) have proposed a refund of Rs. 1.691 per unit to electricity consumers in their September bills, citing reduced fuel charges in July 2025. The proposal was submitted to the National Electric Power Regulatory Authority (Nepra) by the Central Power Purchasing Agency (CPPA) under the monthly Fuel Charges Adjustment (FCA) mechanism. Nepra has scheduled a public hearing on August 28 to assess whether the requested refund aligns with the economic merit order. According to the petition, power generation in July totaled 14,123 gigawatt-hours (GWh) at an average cost of Rs. 7.781 per unit, amounting to a total fuel cost of Rs. 109.89 billion. After accounting for 2.95% transmission losses, 13,666 GWh were delivered to Discos for Rs. 8.1848 per unit. This figure includes Rs. 3.883 billion in prior-period consumer recovery, translating to an additional Rs. 0.275 per unit. Hydropower dominated the generation mix in July, contributing 40.1% (5,668 GWh) of the total electricity produced. RLNG-based generation followed, accounting for 17.26% (2,438 GWh) for Rs. 22.03 per unit. Local coal contributed 1,503 GWh (10.64%) at Rs. 11.347 per unit, while imported coal added 1,140 GWh at Rs. 14.498 per unit. Nuclear energy played a significant role, generating 1,405 GWh at a cost of just Rs. 2.42 per unit. Local natural gas-based generation totaled 1,093 GWh, at a cost of Rs. 13.379 per unit. Interestingly, no electricity was generated from diesel, while RFO-based generation contributed a modest 108 GWh at a steep cost of Rs. 31.053 per unit. Renewable sources also made their mark, with wind and solar contributing 592 GWh and 105 GWh, respectively. However, no power was generated from bagasse during the month. The Energy Ministry, following approval from the Economic Coordination Committee (ECC) on August 19, has directed Nepra to ensure a uniform FCA policy nationwide. This policy applies the same FCA rates and periods to both ex-Wapda distribution companies and K-Electric. Any gap between K-Electric’s monthly FCA and the notified rate will be covered through subsidies or cross-subsidies. The uniform FCA policy has been in effect since June 2025 and is being billed to consumers starting in August.