Consumers are preparing for an increase in tariffs

Consumers are likely to face a hike of up to Rs 0.48 per unit in electricity tariffs due to the fuel cost adjustment for December 2025. Earlier, the benchmark price was set at Rs 9.14 per unit, but the actual price touched a higher level of Rs 9.62 per unit, an increase of Rs 0.48.

The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has submitted a request to the National Electricity Regulatory Authority (Nepra), seeking an increase of Rs 0.4781 per kilowatt hour (kWh) compared to the benchmark fuel cost.

CPPA-G estimated fuel charges for December at Rs 9.1419 per kWh, but the adjustment will increase the applicable cost to Rs 9.6200 per kWh.

Data provided by CPPA-G shows that total power generation reached 8,487 gigawatt hours (GWh) in December. Net energy delivered to distribution companies (DISCOs) amounted to 8,208 GWh after accounting losses and adjustments. Transmission losses were reported at 259 GWh, accounting for 3.05% of power generation.

Hydel power contributed 1,534 GWh, representing 18.07% of the monthly energy mix. Local coal-fired plants produced 1,187 GWh, accounting for 13.99% of total generation. Imported coal plants produced 860 GWh, contributing 10.13%.

Natural gas electricity generation reached 951 GWh, or 11.20% of the energy mix. Liquefied natural gas (RLNG)-based generation amounted to 1,464 GWh, making up 17.24% of the total. Nuclear power emerged as the largest contributor with 2,126 GWh, or 25.05%.

Electricity imports from Iran added 33 GWh, accounting for 0.39%. Wind power provided 162 GWh, or 1.91% of total generation. Bagasse-based plants generated 97 GWh, accounting for 1.14%, while solar contributed 74 GWh, or 0.87% of total generation.

RLNG generation had the highest fuel cost at Rs 20.5457 per kWh during the month under review. It was followed by imported coal costing Rs 14.3088 per kWh, natural gas electricity at Rs 13.8030 per kWh and locally generated coal at Rs 13.1286 per kWh.

Nuclear power generation remained the cheapest source, with fuel costs quoted at Rs 2.3009 per kWh. Bagasse-based electricity had a fuel cost of Rs 10.3937 per kWh, while electricity imports from Iran were priced at Rs 21.9685 per kWh.

Total fuel cost for power generation in December was estimated at Rs 77.706 billion. After earlier adjustments of Rs 2.398 billion and accounts for sales to independent power producers, the net fuel cost of power delivered to DISCOs came to Rs 78.957 billion. This translated to an average fuel cost of Rs 9.6200 per kWh.

NEPRA has scheduled a public hearing on January 29 to consider the demand for hike in electricity price due to fuel cost adjustment.