Electricity prices may rise by Rs. 1.27 per unit

ISLAMABAD: Electricity prices in Pakistan may rise by Rs. 1.27 per unit as the National Electric Power Regulatory Authority (NEPRA) held a hearing on a fuel cost adjustment request submitted by the Central Power Purchasing Agency (CPPA) for the month of April.

The hearing, chaired by NEPRA’s chairman, was based on CPPA’s claim that the cost of power generation increased significantly last month. According to the CPPA, a total of 10.51 billion units of electricity were generated in April, out of which 10.19 billion units were supplied to distribution companies. The average generation cost stood at Rs. 8.94 per unit, compared to the reference cost of Rs. 7.68 per unit.

Power Generation April 2025:

• Hydropower: 21.94%
• Local coal: 14.51%
• Imported coal: 10.02%
• Furnace oil: 0.97%
• Domestic natural gas: 8.01%
• Imported RLNG: 20.52%
• Nuclear energy: 17.91%

During the hearing, a representative from the Karachi Chamber of Commerce strongly criticized the government’s energy strategy. He argued that shutting down cheaper local gas fields in favor of expensive imported RLNG is unnecessarily raising production costs.

“This policy is burdening industries and consumers alike,” he said, urging authorities to prioritize local energy sourcesto reduce the rising cost of electricity.

Read more: NEPRA Approves 2 New Solar Projects for Cheap Electricity

If the proposed increase is approved, electricity bills will go up for consumers already facing the strain of inflation. Though the hike is limited to fuel cost adjustment charges, it will likely contribute to the broader rise in the cost of living.

NEPRA is expected to announce its final decision in the coming days.