Consumers to Face Higher Electricity Bills in Summer

Staff Report:

ISLAMABAD: The consumers are going to witness increase in electricity bills in summer due to reduction in hydel power generation.

The government has warned of potential hike in electricity prices during the summer months in wake of reduced hydropower generation and increased reliance on expensive fuels.

The General Manager of the National Power Control Centre (NPCC) shared this information during a public hearing on the Fuel Cost Adjustment (FCA) request submitted by distribution companies (Discos) for March 2025.

The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has pleaded to cut power tariff by 3 paisa per unit on account of fuel adjustment FCA.

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However, when combined with the previously approved 90 paisa per unit for the months of April, May, and June 2025, the net impact of reduction would amount to 50 paisa per unit.

The NPCC General Manager said that there would be no shortage in power generation. This is due to adequate fuel arrangements and the FCA will increase due to the use of costlier fuels.

During the hearing, CPPA-G Chief Executive Officer Rihan Akhtar backed the NPCC’s assessment regarding the expected rise in FCA.

Arif Bilwani has voiced concerns over the government’s future power generation plans, FCA structure, and the arrangements made by relevant agencies.

Amir Sheikh said that captive power plants had been forced to switch to the national grid. It resulted in freeing up indigenous gas and RLNG especially from Sindh and Khyber Pakhtunkhwa.

He said that this gas had not been allocated to Independent Power Producers (IPPs) or other sectors.

He pointed out that the industry had not received any benefits in the form of increased FPA (Fuel Price Adjustment) refunds.

He also raised question about the use of diverted gas and stressed that the industry should benefit from it through a higher FPA refund.