Electricity prices likely to drop further in Pakistan

ISLAMABAD: The federal government has decided to refund excess payments made by electricity consumers in a move that could bring relief to them, ARY News reported.

The decision comes after the Central Power Purchasing Agency (CPPA) filed a request for a monthly fuel price adjustment for February.

According to the CPPA, electricity production in February stood at 6.49 billion units, while 6.66 billion units were supplied to power companies. The cost of electricity per unit was Rs 8.22, while the reference cost for February was set at Rs 8.52 per unit.

The National Electric Power Regulatory Authority (NEPRA) is scheduled to hear the CPPA’s request on March 26. If approved, electricity consumers could see a reduction of up to 30 paisas per unit in their electricity bills.

In February, Pakistan generated 27.12percent of its electricity from hydropower, 15.02 percent from local coal, 1.56percent from imported coal, 10.32percent from gas, 14.11percent from imported LNG, and 26.59percent from nuclear fuel.

Earlier on March 12, K-Electric (KE) has also filed another petition with the National Electric Power Regulatory Authority (NEPRA) for Rs4.84 per unit power tariff cut

K-Electric proposed refund comes after the utility charged higher per unit electricity rates in January 2025.

Under the monthly fuel charges adjustment (FCA) for January, the company wants to refund approximately Rs4.84 billion to its power consumers.

The regulator has scheduled a public hearing for March 20 to consider the KE request for a provisional negative FCA.