Good news for electricity consumers in Pakistan as power distribution companies (Discos) have suggested a refund of Rs. 1.691 per unit in the upcoming September 2025 bills. The relief comes under the Fuel Charges Adjustment (FCA) mechanism, following a decline in fuel costs during July.
The proposal has been submitted by the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (Nepra). A public hearing on August 28 will determine whether this refund aligns with the prescribed economic merit order.
As per the petition, total electricity generation in July stood at 14,123 gigawatt-hours (GWh) at an average cost of Rs. 7.781 per unit, with the overall fuel expense recorded at Rs. 109.89 billion. After accounting for 2.95% transmission losses, nearly 13,666 GWh were supplied to Discos at Rs. 8.1848 per unit, which also included Rs. 3.883 billion recovered from consumers for prior periods.
In the generation mix, hydropower led the way with 40.1% share (5,668 GWh), followed by RLNG-based power at 17.26% (2,438 GWh) costing Rs. 22.03 per unit. Local coal contributed 10.64% (1,503 GWh) at Rs. 11.34 per unit, while imported coal produced 1,140 GWh at Rs. 14.49 per unit.
Nuclear power also played a vital role, generating 1,405 GWh at just Rs. 2.42 per unit, making it the cheapest source. On the other hand, high-cost generation sources like RFO (108 GWh at Rs. 31.05 per unit) remained minimal. Wind and solar also added clean energy, producing 592 GWh and 105 GWh, respectively.
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The Energy Ministry has already instructed Nepra to enforce a uniform FCA policy nationwide, after approval by the Economic Coordination Committee (ECC) on August 19. Under this policy, both ex-Wapda Discos and K-Electric are charged the same FCA rates, with any gap adjusted through subsidies or cross-subsidies.
For consumers, this means the Rs. 1.691 per unit relief is likely to appear in September electricity bills, giving much-needed financial relief during rising inflation.
