State-run electricity distribution companies (Discos) have suggested a refund of Rs1.691 per unit for consumers in their September bills, citing lower fuel costs during July 2025.
The Central Power Purchasing Agency (CPPA) submitted the proposal to the National Electric Power Regulatory Authority (Nepra) under the monthly Fuel Charges Adjustment (FCA) system.
Nepra will hold a public hearing on August 28 to determine whether the proposed refund is consistent with the economic merit order.
As per the petition, power generation in July stood at 14,123 gigawatt-hours (GWh) with an average cost of Rs7.781 per unit, totaling Rs109.89 billion in fuel expenses.
After deducting 2.95% transmission losses, 13,666 GWh were supplied to Discos at Rs8.1848 per unit. This amount also included Rs3.883 billion from previous consumer recoveries, equal to an additional Rs. 0.275 per unit.
Hydropower was the largest contributor in July, providing 5,668 GWh or 40.1% of total generation. RLNG followed with 2,438 GWh (17.26%) at Rs22.03 per unit.
Local coal contributed 1,503 GWh (10.64%) at Rs11.347 per unit, while imported coal added 1,140 GWh at Rs14.498 per unit.
Nuclear energy also played a key role, producing 1,405 GWh at a low cost of Rs2.42 per unit. Power from local natural gas reached 1,093 GWh at Rs13.379 per unit.
Notably, no electricity was generated from diesel, while furnace oil-based generation was limited to 108 GWh at a high cost of Rs31.053 per unit.
Renewable sources contributed as well, with wind adding 592 GWh and solar 105 GWh. No generation came from bagasse during the month.
The Energy Ministry, following approval from the Economic Coordination Committee (ECC) on August 19, has instructed Nepra to enforce a uniform FCA policy across the country.
This ensures the same FCA rates and timelines for both ex-Wapda Discos and K-Electric. Any shortfall between K-Electric’s monthly FCA and the notified rate will be covered through subsidies or cross-subsidies.
The uniform FCA policy has been in place since June 2025 and has been applied to consumer bills since August.