Pakistan’s power distribution companies have put forward a plan to return about Rs1.69 per unit to customers in their next bills. This move stems from lower fuel costs during July 2025.
What the Proposal Means for Consumers
The Central Power Purchasing Agency sent this request to the National Electric Power Regulatory Authority, known as NEPRA. It falls under the fuel charges adjustment system, which tweaks bills monthly based on actual fuel expenses.
NEPRA will hold a public hearing on August 28, 2025, to review if the refund fits with cost-efficient power rules. If approved, the cut would apply to September bills for most users.
This relief comes at a time when many households face high energy costs. Pakistan’s electricity sector often sees such adjustments to reflect changes in global fuel prices and local generation shifts.
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Key Figures from July Power Output
In July 2025, the country produced 14,123 gigawatt-hours of electricity. The average cost came to Rs7.78 per unit, leading to total fuel expenses of Rs109.89 billion.
After losses in transmission of about 3%, companies delivered 13,666 gigawatt-hours to users at Rs8.18 per unit. This includes some recoveries from past periods, adding Rs0.28 per unit.
The mix of sources showed a heavy reliance on cheaper options:
- Hydropower led with 40% or 5,668 gigawatt-hours, free from fuel costs.
- Liquefied natural gas plants gave 17% or 2,438 gigawatt-hours at Rs22.03 per unit.
- Local coal added 11% or 1,503 gigawatt-hours at Rs11.35 per unit.
- Imported coal supplied 8% or 1,140 gigawatt-hours at Rs14.50 per unit.
- Nuclear sources provided 10% or 1,405 gigawatt-hours at a low Rs2.42 per unit.
- Natural gas from local fields contributed 8% or 1,093 gigawatt-hours at Rs13.38 per unit.
Other inputs included small amounts from furnace oil at a high Rs31.05 per unit, plus wind and solar at 592 and 105 gigawatt-hours. No diesel or bagasse power was used that month.
Recent Policy Shifts
The Energy Ministry got approval from the Economic Coordination Committee on August 19, 2025, to push for equal fuel adjustment rules across the country. This means the same rates apply to all major distributors, including K-Electric in Karachi.
Any differences in costs for K-Electric will get covered by government funds or shared charges. This uniform approach started in June 2025, with bills reflecting it from August onward.
Such steps aim to make the system fairer, especially as Pakistan works to balance imports and local resources amid economic pressures.
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Looking Ahead
If NEPRA gives the green light after the hearing, this could ease some burden on families and businesses. Past adjustments have varied, with recent ones offering cuts in some months but hikes in others due to fuel price swings.
Officials stress that following efficient generation orders helps keep costs down. Users should watch for updates from NEPRA on the final decision.
For more on this, check the official NEPRA site: NEPRA Official Website.
