NEPRA Approves Rs0.65 Per Unit Tariff Cut

ISLAMABAD – The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs0.65 per unit in electricity rates for June 2025.

This decision falls under the monthly Fuel Charges Adjustment (FCA) mechanism. The revised tariff will be reflected in consumer bills for August 2025, offering some relief amid rising energy costs.

NEPRA confirmed the cut through an official notification after reviewing actual fuel costs submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G).

The real fuel cost for June stood at Rs7.68 per unit, compared to the earlier reference cost of Rs8.33. This difference led to the downward revision of tariffs.

The FCA will apply to all power distribution companies (DISCOs), including K-Electric. However, NEPRA clarified that lifeline users, Electric Vehicle Charging Stations (EVCS), and prepaid meter customers will not benefit from this reduction. Nonetheless, millions of regular users under Ex-WAPDA Distribution Companies (XWDISCOs) are expected to gain.

Earlier, NEPRA had invited stakeholders for a public hearing on July 30 to finalise the adjustment. Representatives from various departments, including the Ministry of Energy and the Ministry of Finance, did not attend despite receiving invitations. However, NEPRA proceeded with the decision based on available data and input.

In June 2025, Pakistan generated 13,744 gigawatt-hours of electricity. Hydel sources contributed 39.36%, RLNG 16.12%, and local coal 10.99%.

Notably, solar energy was supplied at zero cost per unit, while electricity imported from Iran was the most expensive at Rs22.51 per unit. After adjusting for system losses, the average cost came to Rs7.68 per unit, justifying the approved fuel adjustment.