Consumers may get relief as CPPA seeks tariff cut

February 20, 2025 (MLN): The Central Power Purchasing Agency (CPPA) has filed a petition with the National Electric Power Regulatory Authority (NEPRA), seeking a reduction in electricity prices under the monthly fuel price adjustment for January.

Consumers may benefit from a reduction of up to Rs2 per unit in their electricity bills, pending regulatory approval.

NEPRA is scheduled to hear the petition on February 27.

During January, Pakistan's energy mix was primarily driven by hydropower, nuclear energy, and Re-Gasified Liquefied Natural Gas (RLNG), with additional contributions from local and imported coal, furnace oil, and renewable sources such as wind, solar, and bagasse.

Hydropower accounted for 10.63% of the total electricity generation, while local coal contributed 15.56%, costing Rs12.54 per unit.

Although imported coal had a lower share of 8.53%, it was notably more expensive at Rs20.96 per unit.

RLNG remained a crucial component, supplying 18.92% of the power at Rs22.47 per unit.

Furnace oil-based generation, despite making up only 1.34% of the mix, had the highest cost at Rs30.34 per unit.

Nuclear energy proved to be the most cost-effective source, contributing 26.61% of total power generation at a minimal cost of Rs1.81 per unit.

Meanwhile, electricity imported from Iran accounted for 0.41% of the supply, priced at Rs26.34 per unit.

A total of 7,816 GWh of energy was delivered to distribution companies (DISCOs), with an average fuel cost of Rs11.008 per unit Rs2 lower than the reference fuel cost of Rs13.01 per unit.

If approved, this reduction is expected to ease the financial burden on consumers amid ongoing high electricity costs.

The final decision on the tariff adjustment will be made after a public hearing, where stakeholders and consumers can voice their concerns and opinions.

Relevant documents, including CPPA-G’s request and NEPRA regulations, are available on NEPRA’s website for public access.

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