• Nepra sets May 29 hearing on Rs1.27/unit hike request
• If approved, power firms to charge Rs13bn more in June

ISLAMABAD: With a massive 22 per cent surge in power consumption in April compared to last year, the electricity price hike has once again returned to burden consumers, as public sector distribution companies (Discos) have sought a Rs1.27 per unit increase in the fuel price adjustment (FCA) for electricity consumed in April.

If approved, the ex-Wapda Discos would charge about Rs13 billion more from consumers in the month of June. The higher consumption is attributed to the early onset of high temperatures compared to last year.

The increase in fuel cost follows eight months of negative monthly adjustments and comes amid substantially higher costs permitted by the National Electric Power Regulatory Authority (Nepra) through a 20pc increase in the base tariff, effective July 1, 2024. More than 68pc of the total power supply during April was derived from domestic fuel sources, with almost 28pc of that at zero fuel cost.

The Central Power Purchasing Agency (CPPA), which filed the petition for the increase in April’s fuel cost, reported a 22pc rise in power consumption over April 2024, and a 26pc increase over March 2025. It stated that electricity delivered to Discos in April amounted to 10,196 gigawatt hours (GWh), compared to 8,114GWh in March 2025 and 8,375GWh in April last year.

The power companies claimed that the average fuel cost in April 2025 was Rs8.95 per unit, slightly lower than Rs8.98 per unit in April 2024.

Nepra has scheduled a public hearing on May 29 to consider the petition filed by CPPA — a subsidiary of the Power Division — seeking “an increase of Rs1.2685/kWh over the reference fuel charge of Rs7.6803 per unit”. The CPPA stated that the actual fuel cost turned out to be Rs8.95 per unit and requested that the revised FCA be applied in the billing month of June.

According to the CPPA, about 10,513GWh of electricity was generated in April at an estimated fuel cost of Rs104.3bn (Rs9.92 per unit), out of which 10,196GWh was delivered to Discos at a cost of Rs91.24bn (Rs8.95 per unit).

Hydropower retained the largest share in the overall grid at about 22pc, down slightly from 24pc in April last year. The second-largest contribution came from RLNG at 21.5pc, followed by nuclear power at nearly 18pc.

This was followed by 14.5pc from local coal and 10pc from imported coal. Domestic natural gas accounted for about 8pc of the grid’s supply.

LNG-based power generation was the most expensive among major sources, with its cost reported at Rs24.26 per unit in April, followed by Rs16.61 per unit from imported coal and Rs11.82 per unit from local gas. Power generation from local coal cost Rs11.2 per unit.

The cost of nuclear fuel was Rs2.1 per unit in April, up from Rs1.83 in February and Rs1.7 in December. Three renewable energy sources — wind, bagasse and solar — collectively contributed 6pc to the grid. Wind and solar had no fuel cost, while bagasse-based generation remained at Rs5.98 per unit. Electricity imported from Iran accounted for about 0.3pc of total power supply, with a reported cost of Rs25.34 per unit.

Published in Dawn, May 22nd, 2025