Consumers across Pakistan may see some relief in their upcoming power bills as the Central Power Purchasing Agency (CPPA) has proposed a reduction of Rs1.69 per unit in July’s fuel cost adjustment (FCA). The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which is scheduled to review the matter in a public hearing on August 28.
According to the petition, power producers generated 14.123 billion units of electricity last month, out of which 13.666 billion units were supplied to distribution companies. The average cost of generation in July stood at Rs8.18 per unit. If NEPRA approves the request, this cut will directly reflect in consumer bills nationwide, including those of Karachi residents, as the government has already decided to enforce a uniform FCA policy across the country.
Quarterly Adjustment Brings Additional Relief
In a separate development, NEPRA has also cleared a Rs1.88 per unit reduction under the fourth-quarter tariff adjustment for FY2024-25. This adjustment, amounting to Rs55.87 billion in negative charges, will benefit consumers for the three-month period from August to October 2025.
The drop comes mainly due to reduced capacity payments and stronger-than-expected industrial power demand. Once the federal cabinet signs off, the quarterly adjustment will apply to all categories of consumers—both in state-run distribution companies (XWDISCOs) and K-Electric.
Why This Matters
For households and industries alike, back-to-back tariff adjustments could provide significant short-term breathing space. However, analysts note that while monthly and quarterly reductions bring temporary relief, Pakistan’s long-term power sector challenges—such as reliance on imported fuel and circular debt—continue to pressure the system.
