Electricity consumers across Pakistan may finally get some relief in their September bills as state-run power distribution companies (Discos) have proposed a reduction of Rs. 1.691 per unit. The proposal comes under the Fuel Charges Adjustment (FCA) mechanism, citing lower fuel costs in July 2025.
Nepra to Decide on FCA Refund for September Bills
The Central Power Purchasing Agency (CPPA) submitted the petition to the National Electric Power Regulatory Authority (Nepra), which has scheduled a public hearing on August 28. The hearing will determine whether the requested refund is in line with the economic merit order.
According to the petition, power generation in July 2025 stood at 14,123 gigawatt-hours (GWh) with an average cost of Rs. 7.781 per unit, totaling Rs. 109.89 billion in fuel costs. After adjusting for 2.95% transmission losses, 13,666 GWh were delivered to Discos at Rs. 8.1848 per unit. This includes Rs. 3.883 billion in prior-period consumer recovery, translating into an extra Rs. 0.275 per unit.
Hydropower dominated the energy mix, contributing over 40% of total electricity generated. RLNG and coal-based power also played significant roles, though their costs were higher. Nuclear energy contributed 1,405 GWh at a much lower cost of Rs. 2.42 per unit, helping reduce overall generation expenses. Renewable sources like wind and solar added to the mix, while no generation came from diesel during the period.
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The Energy Ministry has already directed Nepra to implement a uniform FCA policy nationwide, ensuring the same rates for both ex-Wapda companies and K-Electric. Any differences in K-Electric’s FCA will be covered by subsidies or cross-subsidies.
This uniform policy has been in place since June 2025, with billing to consumers starting in August. If approved, the proposed refund will offer much-needed financial relief to households and businesses struggling with rising electricity costs.
