Power consumers may get Rs 0.71 per unit relief on their January bills

Electricity consumers may enjoy relief in their upcoming electricity bills following a cut in tariffs by up to Rs 0.71 per unit due to fuel adjustment charges for November 2025. The expected relief, which will be implemented in bills issued in January 2026, comes after the Central Power Purchasing Agency (CPPA) formally requested from the National Power Purchasing Agency (CPPA). Companies were ready to refund Rs 0.7182 per unit to consumers due to what it described as overcharging in November.

In the petition filed on behalf of former Wapda distribution companies (Discos) as well as K-Electric, the CPPA explained that the benchmark fuel charges for November were set at Rs 6.88 per unit. However, the actual cost of power generation during the month was significantly lower at an average of Rs 6,162 per unit, which created a measurable difference between projected and actual costs. Hence, the agency sought NEPRA’s approval to refund the additional amount of Rs 0.7182 per unit that had been charged through the fuel cost adjustment mechanism.

According to detailed data provided by CPPA-G, total electricity generation in November stood at 8,050 gigawatt hours (GWh), generating electricity at a cumulative cost of Rs 50.09 billion, which translates to an average cost of generation of Rs 6.22 per unit. After incorporating factors such as transmission losses, sale of electricity to independent power producers and a number of past financial adjustments, the total net supply delivered to Discos was recorded at 7,813 GWh at a total cost of Rs 48.14 billion or Rs 6,162 per unit. The report also noted that the sale price to Discos included an additional Rs 0.037 per unit due to earlier adjustments which were already factored into the pricing process.

Hydropower emerged as the single largest contributor to the national grid in November, generating 3,153 GWh and accounting for 39.16% of the country’s total energy mix. This was followed by nuclear power, which generated 2,031 GWh (equivalent to 25.23% of the mix) at Rs 2.2706 per unit. RLNG-based units generated 696 GWh, accounting for 8.64% of the total, at Rs 21.5789 per unit.

Local coal contributed 752 GWh (9.34% at Rs 17,767 per unit, while imported coal added 407 GWh (5.06%) at Rs 14,135 per unit. Pakistan also imported 35 GWh from Iran at Rs 22.5729 per unit.

Domestic gas provided 680 GWh, or 8.44% of the mix, at Rs 14.3396 per unit, while no electricity was generated from either residual fuel oil or high-speed diesel during the month. Wind power contributed 136 GWh, bagasse-based units provided 75 GWh at Rs 10.84 per unit and solar power generated 86 GWh.

NEPRA has scheduled a public hearing on December 31 to consider the petition. As per federal policy guidelines, any FCA approved adjustment for ex-WAPDA discos will also apply to K-Electric customers to ensure uniformity across distribution companies.