Consumers across Pakistan are set to face another increase in their electricity bills as the Central Power Purchasing Agency (CPPA-G) has formally requested a price hike. The agency has approached the National Electric Power Regulatory Authority (NEPRA) seeking permission to transfer an additional financial burden to the public.
The Petition for a Price Increase
In a petition submitted to the power regulator, the CPPA-G, acting on behalf of the ex-Wapda distribution companies (Discos), has asked for approval to collect an extra Re0.4781 per unit from consumers. This request is for the monthly Fuel Cost Adjustment (FCA) pertaining to electricity consumed in December 2025. The agency argues that while consumers were charged a reference fuel cost of Rs9.1419 per unit for that month, the actual cost incurred was significantly higher at Rs9.62 per unit, creating a shortfall that needs to be recovered.
Sharp Rise in Generation Costs
The data presented in the petition reveals a substantial jump in power generation expenses. The total electricity generated in December 2025 was 8,487 gigawatt-hours (GWh), with an overall cost of Rs77.706 billion. This translates to a cost of Rs9.1558 per unit at the generation stage. However, after accounting for transmission losses, sales to Independent Power Producers (IPPs), and prior period adjustments, the net supply to the Discos was 8,208 GWh at a much higher cost of Rs78.957 billion, or Rs9.62 per unit.
The figures show alarming trends on both annual and monthly scales:
- Year-on-Year Increase: Power generation in December 2025 was 8.81% higher (8,487 GWh) compared to December 2024 (7,800 GWh). The generation cost per unit also rose from Rs9.60 to Rs9.62.
- Month-on-Month Surge: Compared to November 2025's generation of 8,050 GWh, December saw a 5.43% increase. More critically, the cost of generation skyrocketed by a staggering 56.12% from Rs6.1621 per unit in November to Rs9.62 per unit in December.
Reasons Behind the Cost Escalation
The CPPA-G has attributed this sharp increase in generation costs to a significant shift in the energy mix. There was a notable decline in hydropower generation, which is a cheaper source of electricity. To compensate for this shortfall, power companies had to rely more on expensive Regasified Liquefied Natural Gas (RLNG)-based generation, which drove the overall cost upwards. This comes despite a reported 5.26% reduction in RLNG prices.
NEPRA has scheduled a public hearing on January 29 to consider the CPPA-G's petition and make a final decision on whether to allow the additional charge to be passed on to the consumers. The outcome of this hearing will directly impact the electricity bills of millions of households and businesses nationwide.
