Electricity users could see a modest drop in their upcoming bills, with the National Electric Power Regulatory Authority (NEPRA) set to review a petition today seeking a Rs. 1.69 per unit reduction in power tariffs for July’s fuel cost adjustment (FCA).
The Central Power Purchasing Agency (CPPA), which filed the request, says July’s lower fuel costs justify passing savings on to consumers. NEPRA’s decision will follow a formal hearing, and if approved, the cut will reflect in bills issued next month.
Breakdown of July’s Power Generation
According to CPPA data, total power generation in July reached 14.123 billion units, with 13.666 billion units supplied to distribution companies. The average production cost was reported at Rs. 8.18 per unit.
Here’s how different energy sources contributed to the national grid:
- Hydropower: 40.13% (largest share, thanks to favorable seasonal water flows)
- LNG: 17.26%
- Local coal: 10.64%
- Imported coal: 8.07%
- Gas-fired plants: 7.74%
- Nuclear energy: Around 9%
This mix highlights the growing reliance on hydropower and LNG while coal—both local and imported—continues to play a significant role.
What This Means for Consumers
Fuel cost adjustments are a regular mechanism allowing NEPRA to reflect changes in global fuel prices and generation costs in consumer tariffs. July’s figures suggest improved reliance on cheaper hydropower, which is helping offset costs tied to imported fuels.
If NEPRA signs off on the petition, households and businesses could see a noticeable, though relatively small, reduction in electricity charges in their September bills.
