ISLAMABAD: Power consumers across the country, except those under K-Electric (KE), are set to receive relief of up to Rs. 2 per unit in electricity rates for January 2025 under the Fuel Charges Adjustment (FCA) mechanism.
The proposed reduction in tariffs is attributed to fluctuations in fuel costs for power generation plants.
The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) seeking approval for the Rs. 2 per unit cut in electricity rates for consumers of Ex-WAPDA Distribution Companies (XWDISCOs). In response, NEPRA has scheduled a public hearing on February 27, 2025, to evaluate the proposed adjustment.
According to the petition filed by CPPA-G, the actual fuel cost for electricity generation in January 2025 was lower than the reference fuel charges, warranting a downward revision in tariffs. The country’s energy mix during the month was primarily composed of hydropower, nuclear energy, and Re-Gasified Liquefied Natural Gas (RLNG), with a smaller share from local and imported coal, furnace oil, and renewable sources like wind, solar, and bagasse.
Hydropower contributed 10.63% of the total power generation, while local coal accounted for 15.56%, costing Rs. 12.54 per unit. Despite a lower share of 8.53%, imported coal was significantly more expensive at Rs. 20.96 per unit. RLNG played a key role, contributing 18.92% of the power supply at a cost of Rs. 22.47 per unit. However, furnace oil-based generation, though minimal at 1.34%, had the highest cost at Rs. 30.34 per unit.
Nuclear power remained the most economical source, accounting for 26.61% of the energy mix at a minimal cost of Rs. 1.81 per unit. Additionally, electricity imported from Iran constituted 0.41% of the supply and was priced at Rs. 26.34 per unit.
The total energy delivered to DISCOs stood at 7,816 GWh, with an average fuel cost of Rs. 11.008 per unit—Rs. 2 lower than the reference fuel cost of Rs. 13.01 per unit. If approved, this tariff reduction is expected to provide significant relief to consumers, especially amid persistently high electricity costs.
The final decision on the tariff adjustment will be made after the public hearing, where stakeholders and consumers will have the opportunity to raise objections and share their views. The relevant documents, including CPPA-G’s request and NEPRA regulations, are available on NEPRA’s website for public access.
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