Increase In Electricity Bills June 2025

Staff Report:

Islamabad: The consumers are set to face increase in electricity rates in bills for June 2025 on account of fuel adjustment.

The National Electric Power Regulatory Authority (NEPRA) has approved increase in electricity rates on account of a fuel charges adjustment of Rs0.9306 per unit for April 2025.The increase in electricity bills will reflect in consumers’ electricity bills for June.

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The Central Power Purchasing Agency (CPPA) had demand of Rs1.268/unit recovery on behalf of the Discos. But the regulator allowed a recovery of 0.9306/unit from electricity consumers under April 2025’s FCA.

According to NEPRA’s official notification, the increase will apply to all categories of consumers of ex-WAPDA distribution companies (XWDISCOs), except lifeline users, Electric Vehicle Charging Stations (EVCS), and pre-paid consumers of all categories.

The adjustment will be charged based on the units consumed in April and will appear as a separate item in the June billing cycle. If a consumer’s bill for June has already been issued before the notification, the adjustment may be applied in subsequent bills.

Notably, from July 2024 to March 2025, electricity consumers received consistent monthly relief under FCA, with refunds ranging from Rs0.288 to Rs2.124 per unit. The refunds peaked in January 2025 with Rs2.124/unit returned to consumers.

The NEPRA’s member technical in an additional note attached to the decision said, the prolonged outage of Guddu’s 747 MW Steam Turbine Unit 16 has forced costly open-cycle operations, costing Rs670 million in April 2025 alone and Rs113 billion since July 2022.

The GENCO-II CEO must provide monthly rehabilitation updates. Meanwhile, Rs75.5 billion collected from consumers via the Neelum Jhelum surcharge has yielded no benefits due to ongoing non-operation, causing Rs6.4 billion losses in April and Rs34.7 billion in FY 2024-25; monthly progress reports from its CEO are essential. Forced outages at economical plants like Uch-I and Qadirpur during peak demand raise fuel costs and undermine cost-effective generation.

 The System Operator must present detailed financial impacts and outage histories to ensure accountability. Partial Load Adjustment Charges (PLAC) surged to Rs2.92 billion in April, demanding a review. Underutilized HVDC transmission at 38% and delayed Lahore North Grid Station exacerbate inefficiencies, causing Rs953 million losses in April. Thar coal plants’ utilization at ~73 per cent requires maximized dispatch. Future FCA hearings must include outage and system constraint briefings with financial implications, it said.

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