Consumers to Get Relief in Electricity Bills for August 2025

Consumers of ex-WAPDA power distribution companies may see a reduction in electricity bills as NEPRA holds a hearing on a Rs1.69 per unit fuel charges adjustment cut.

The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on Thursday, August 28 to consider a petition by the Central Power Purchasing Agency-Guarantee (CPPA-G) seeking a reduction in the fuel charges adjustment (FCA) for July 2025. The proposal calls for a cut of Rs1.6911 per unit from the reference fuel charge of Rs9.8758 per unit, citing lower actual generation costs. If approved, the move will provide relief to consumers of ex-WAPDA distribution companies in upcoming billing cycles.Increase In Electricity Bills June 2025

According to the data submitted, Pakistan generated a total of 14,123 gigawatt-hours (GWh) of electricity during July. Hydropower contributed the largest share at 40% of the energy mix, followed by nuclear at 17%. Imported coal accounted for 15%, re-gasified liquefied natural gas (RLNG) 13%, local coal 11%, natural gas 8%, wind 4%, and solar less than 1%, while imports from Iran made up 0.25%. After accounting for nearly 3% transmission losses, the net electricity supplied to distribution companies stood at 13,666 GWh.

Fuel charges adjustments are determined monthly by NEPRA to account for variations in fuel costs, ensuring that electricity tariffs reflect the actual cost of power generation. A negative FCA, such as the one proposed for July, reduces consumer bills, while a positive FCA adds to them. In recent months, consumers have faced significant upward adjustments due to high reliance on imported fuels and global price volatility.

The Ministry of Energy has already directed NEPRA to ensure uniform application of the FCA across the country, following a decision by the Economic Coordination Committee (ECC) on August 19. This means that the FCA determined for ex-WAPDA distribution companies will also be applied to K-Electric customers under a tariff rationalization mechanism. Any difference between K-Electric’s FCA and the notified rate will be offset through government subsidy or cross-subsidy arrangements.

Consumer groups and industry stakeholders have been invited to participate in the hearing, which will finalize whether electricity bills for July will reflect a downward adjustment. Energy analysts note that the proposed relief, if approved, would be a rare reprieve for households and businesses struggling with rising power costs. Over the past year, fuel charges adjustments have frequently added to monthly bills, driven by expensive LNG cargoes, imported coal costs, and exchange rate fluctuations.

A possible cut in the FCA is being viewed as timely given the broader inflationary environment in Pakistan. Headline inflation has remained elevated, with energy and food prices being key drivers. A reduction in electricity bills could help ease pressure on consumers while also slightly reducing input costs for industries reliant on grid power.

However, experts caution that the relief may be temporary, as the energy mix remains vulnerable to fluctuations in global commodity prices. While hydropower’s 40% share in July reflects strong seasonal inflows, reliance on imported fuels for over a quarter of generation leaves Pakistan exposed to international market shocks. Structural reforms in the power sector, including investment in renewables and better utilization of domestic resources, remain critical for long-term tariff stability.

The outcome of today’s NEPRA hearing will determine whether Pakistani consumers see their electricity bills reduced for July—a decision that could offer short-term financial relief but also highlights the need for sustainable solutions in the country’s energy sector.