In a significant relief for electricity consumers across Pakistan, the National Electric Power Regulatory Authority (NEPRA) has mandated power distribution companies to provide refunds in their upcoming bills. The regulatory body has directed all Discos and K-Electric to return Rs0.48 per unit to consumers who were overcharged during September.
Regulatory Decision and Consumer Relief
The Central Power Purchasing Agency-Guarantee (CPPA-G) had initially approached NEPRA seeking approval to refund Rs0.37 per unit that was overcharged from consumers during September through the Fuel Charge Adjustment (FCA) mechanism. However, after conducting detailed calculations and making several adjustments, the regulatory authority determined that consumers deserve a higher refund of Rs0.48 per unit.
According to the petition filed by CPPA-G on behalf of ex-Wapda distribution companies and K-Electric, the reference fuel charges for September were set at Rs7.6554 per unit. However, the actual cost of power generation averaged only Rs7.2873 per unit, creating the basis for the refund.
Power Generation Analysis and Cost Efficiency
The data provided by CPPA-G reveals interesting trends in Pakistan's power generation sector. Total electricity generation in September reached 12,592 gigawatt hours (GWh), costing Rs89.33 billion or Rs7.094 per unit. This represents an increase of 105 GWh compared to the same month in the previous year, when generation stood at 12,487 GWh.
Despite the increase in generation, the country achieved remarkable cost efficiency. The generation cost for September 2024 was Rs104.11 billion for 12,487 GWh, which significantly declined to Rs89.33 billion for 12,592 GWh in September 2025. This represents substantial savings in power generation costs.
Energy Mix and Cost Breakdown
The composition of Pakistan's power generation reveals a diverse energy portfolio with varying costs:
Hydropower emerged as the largest contributor to the national grid, generating 4,783 GWh or 38% of the total mix at absolutely no fuel cost. Nuclear plants contributed 2,227 GWh (17.69%) at Rs2.189 per unit, representing one of the most cost-effective thermal generation sources.
RLNG-based plants produced 1,815 GWh (14.4%) at Rs21.1927 per unit, while local coal contributed 1,202 GWh (9.54%) at Rs13.01 per unit. Imported coal accounted for 1,019 GWh (8.1%) at Rs13.738 per unit.
Indigenous gas contributed 7.47% of the generation at Rs13.498 per unit. The most expensive source, residual fuel oil, contributed less than 1% at Rs28.24 per unit.
After accounting for transmission losses, IPP sales, and prior adjustments, the net supply to Discos was 12,217 GWh at Rs7.287 per unit. This comprehensive energy mix and cost analysis formed the basis for NEPRA's decision to order the refund to consumers.
