In Pakistan, electricity consumers are expected to receive significant relief in their September bills, as state-owned power distribution companies (DISCOs) have proposed a refund of Rs 1.69 per unit.
This concession was requested based on lower fuel prices in July 2025. In this regard, the Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) under the Monthly Fuel Charges Adjustment (FCA) mechanism.
NEPRA has scheduled a hearing on this application on August 28 to determine whether this relief complies with the Economic Merit Order.
According to the application, electricity production in July amounted to 14,123 gigawatt-hours, with an average per-unit cost of Rs 7.78, and the total fuel cost was Rs 10.989 billion. After accounting for line losses of 2.95%, 13,666 gigawatt-hours of electricity were supplied to DISCOs at a per-unit cost of Rs 8.18.
This also included a recovery of Rs 388 million from the previous period, which increased the per-unit cost by another Rs 0.27.
By generation source, hydro power was the highest in July, contributing 40.1% of total production (5,668 gigawatt-hours). Imported LNG-based electricity followed, producing 17.26% (2,438 gigawatt-hours) at a cost of Rs 22.03 per unit.
Electricity generated from local coal amounted to 1,503 gigawatt-hours (10.64%) at a cost of Rs 11.34 per unit, while imported coal generated 1,140 gigawatt-hours at Rs 14.49 per unit.
Nuclear power played a key role, producing 1,405 gigawatt-hours at only Rs 2.42 per unit. Local gas-based electricity production amounted to 1,093 gigawatt-hours, costing Rs 13.37 per unit.
Interestingly, no electricity was generated from diesel in July, while only 108 gigawatt-hours were produced from furnace oil at a high cost of Rs 31.05 per unit.
Meanwhile, 592 and 105 gigawatt-hours of electricity were generated from wind and solar energy, respectively, while no electricity was produced from biogas.
The Ministry of Energy has instructed NEPRA to ensure the implementation of a uniform FCA policy across the country, following the policy approved by the Economic Coordination Committee (ECC) on August 19.
