A promising update for power consumers across Pakistan: electricity rates may decrease by 0.65 PKR per unit, following a proposal by the Central Power Purchasing Agency that reflects reduced fuel costs in June 2025. If approved, relief will appear in August bills for units consumed in June.

Why the Price Drop Is Possible

During June, the energy mix witnessed a surge in lower-cost hydropower, contributing to a lower average generation cost. At the same time, more expensive fuel sources were used less frequently. As a result, CPPA submitted a request to the regulatory body urging adjustment under the monthly Fuel Cost Adjustment (FCA) mechanism.

A public hearing is scheduled for July 30, 2025, where NEPRA will review the proposal before finalizing the decision.

Who Will Benefit

The expected reduction applies to consumers of ex-WAPDA distribution companies, covering domestic, commercial, industrial, and agricultural users excluding lifeline and prepaid consumers. Notably, K-Electric users are not eligible, as their rates follow a separate adjustment system.

Anticipated Impact on Monthly Bills

  • The 65 paisa per unit relief applies only to the FCA portion, not to base tariffs, taxes, or fixed charges.
  • For example:
    • A household using 200 units could save approximately Rs. 130
    • With 300 units, savings may reach around Rs. 195
    • For 500 units, consumers could save up to Rs. 325

Actual savings will vary based on total monthly consumption and applicable meter-based charges.

Timeline and Next Steps

  1. July 30, 2025: NEPRA conducts public hearing.
  2. Early August 2025: Final decision may be issued.
  3. August electricity bills: Reflect any approved reduction for June usage.

Conclusion

The potential Rs. 0.65 per unit cut in electricity tariffs offers welcome financial relief amid rising inflation and power costs. While not universal in application, it demonstrates the impact that lower fuel expenses and a shifting energy mix can have on consumer bills. If approved, millions of eligible consumers across Pakistan could start enjoying lighter electricity bills in August.

Stay alert for NEPRA’s final decision after the July 30 hearing and check your August electricity bill to see if the FCA adjustment has been applied.