Consumers in Pakistan are bracing for higher electricity bills in May 2025, driven by a 20% surge in power demand and reduced hydropower generation, forcing reliance on costlier thermal power plants.
The National Power Control Centre (NPCC) General Manager, speaking at a National Electric Power Regulatory Authority (NEPRA) public hearing on April 29, 2025, explained that the Fuel Cost Adjustment (FCA) for April reflects increased generation costs due to this shift.
The Central Power Purchasing Agency Guarantee Limited (CPPA-G) requested a Rs0.0309/unit FCA reduction for April. Still, NEPRA clarified that, after accounting for a Rs0.4641/unit negative FCA refund from April, consumers will face a net increase of Rs0.4332/unit, equating to minimal savings of Rs250 million if approved.
The offline status of the Neelum-Jhelum hydropower project, with no return timeline, further exacerbates costs. Despite this, NPCC assured adequate fuel supplies to prevent generation shortages.
In a separate NEPRA hearing, a proposed quarterly adjustment for January–March 2025 offers Rs1.50/unit relief for three months, totalling Rs51.493 billion, pending approval. Concerns were raised about transparency in gas utilisation and the absence of senior officials from HESCO, MEPCO, and KESCO, prompting NEPRA to demand explanations.
The final decision, affecting all distribution companies, including K-Electric, awaits detailed scrutiny.
