Electricity Prices Set to Rise in October 2025

Electricity consumers across Pakistan should brace for a net increase of Rs. 1.98 per unit in their October bills, as the negative fuel cost adjustment (FCA) for July expires and a new positive FCA for August is added, officials confirmed during a public hearing at the National Electric Power Regulatory Authority (NEPRA) on Monday. The negative FCA of Rs. 1.79 per unit, which provided some relief in September, will no longer apply from October. Instead, a positive FCA of Rs. 0.19 per unit for August will be charged, resulting in a cumulative hike of Rs. 1.98 per unit for most consumers, according to Power Division officials briefing NEPRA. The Central Power Purchasing Agency (CPPA-G), in its petition to NEPRA on behalf of ex-Wapda distribution companies (Discos) and K-Electric consumers, explained that the reference fuel cost for August was Rs. 7.3149 per unit, while the actual average cost of generation reached Rs. 7.5059 per unit. The agency requested permission to recover an additional Rs. 0.1911 per kilowatt-hour (kWh) from consumers to cover the difference, which will collectively add Rs. 2.62 billion to October’s bills. During the hearing, consumer representatives raised concerns about the layering of taxes and surcharges. They pointed out that a general sales tax (GST) of about Rs. 0.60 per unit is being levied on top of a Rs. 3.23 per unit surcharge, which the federal government is using to pay off Rs. 1,225 billion in loans from 18 commercial banks. One intervenor noted that the 18 percent GST on the surcharge could accelerate loan repayment, potentially reducing the payback period from six years to five. Industrial consumers, meanwhile, warned that the end of the prime minister’s relief package has already driven their energy costs up by 10 percent, with per-unit tariffs for industry rising from Rs. 29 to Rs. 35. They reminded the government of earlier commitments to supply power at $0.09 per unit. Officials from CPPA-G attributed part of the cost increase to a drop in hydropower generation during August, caused by lower water releases from dams due to provincial flooding. Hydropower’s share in the energy mix fell to 38.8 percent, down from a reference level of 40.9 percent, forcing greater reliance on more expensive imported coal and RLNG. Questions were also raised about the government’s recent announcement of bill exemptions for flood-affected areas. Power Division officials clarified that the federal government will cover the cost of these exemptions, rather than passing them on to other consumers.