Electricity Bills Likely to Rise in October as CPPA Seeks Tariff Hike

ISLAMABAD (18 Sept 2025): Power consumers across Pakistan may face increased electricity bills in October, as the Central Power Purchasing Agency-Guarantee (CPPA-G) has requested the National Electric Power Regulatory Authority (NEPRA) to approve a hike of Rs0.1911 per unit under the Fuel Charges Adjustment (FCA) for August 2025.

The petition, submitted on behalf of ex-WAPDA distribution companies (Discos) and K-Electric, argues that the actual cost of electricity generation in August was Rs7.5059 per unit, compared to the reference cost of Rs7.3149, warranting the proposed adjustment.

NEPRA has scheduled a public hearing on September 29 to evaluate the request. If approved, the increase could impose an additional burden of Rs3 billion on electricity consumers across the country.

Read more: Xi Jinping Proposes SCO Development Bank to Boost Growth

Under federal policy guidelines, the FCA adjustment for ex-WAPDA Discos will also be applicable to K-Electric customers to ensure uniformity.

Power Generation Mix – August 2025

According to CPPA-G data, total electricity generation in August stood at 14,218 GWh, costing Rs103.4 billion (average Rs7.27/unit). After deducting transmission losses and other adjustments, 13,715 GWh was delivered to Discos at Rs7.51 per unit, justifying the tariff revision.

Here’s a breakdown of the energy mix:

• Hydropower: 5,517 GWh (39%) – Zero fuel cost

• Nuclear: 2,145 GWh (15%) – Rs2.19/unit

• RLNG: 2,180 GWh (15.3%) – Rs21.73/unit

• Coal: 18% of total – Local coal at Rs12.01, imported coal at Rs14.07

• Indigenous Gas: 7.3% – Rs13.43/unit

• Residual Fuel Oil: Less than 1% – Rs33.01/unit

• Electricity imports from Iran: 78 GWh – Rs41.09/unit

The high generation cost from RLNG, fuel oil, and imported electricity contributed significantly to the FCA hike.

Consumers are now awaiting NEPRA’s decision later this month, which will determine the level of increase in electricity bills for October.