Electricity rate may increase by 48 paisa/unit


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The minister invited international partners to invest in the nationwide rollout of Advanced Metering Infrastructure (AMI), estimating a need of $3 billion to serve more than 30 million consumers. PHOTO: Archive

ISLAMABAD:

Electricity consumers in Pakistan may face an additional burden of 48 paise per unit due to Fuel Cost Adjustment (FCA) for the month of December 2025.

The National Electric Power Regulatory Authority (NEPRA) on Thursday held a public hearing on an application submitted by the Central Power Purchasing Agency (CPPA).

The CPPA told NEPRA that national electricity consumption increased by 22 percent compared to the same period last year, mainly due to higher demand from the industrial and agricultural sectors. According to the data, industries consumed 2 billion units of electricity in December 2024, which increased to 2.4 billion units this December 2025.

Officials said around 44 percent of industrial and 39 percent agricultural consumers benefited from the recent power packages, while overall electricity production on an annual basis increased by 2.4 percent.

NEPRA was informed that the peak demand also showed a significant increase. In December 2024, the maximum demand stood at 13,792 megawatts, while in the same month of 2025 it reached 14,886 megawatts, according to the National Power Control Center (NPCC).

However, NPCC officials said that despite the increased demand, solar power is gradually reducing grid consumption, especially during the day. They revealed that between 9,000 and 10,000 megawatts of electricity are currently generated daily through net metering, which is affecting demand on the national grid.

During the hearing, industrial consumers harshly criticized the proposed increase. They argued that electricity prices are already too high and that further adjustments would harm competitiveness. “Instead of reducing energy prices, a hidden increase is being imposed,” said one representative, adding that the industry cannot survive with the current tariff structure.

Power sector officials responded that while the FCA may increase, the quarterly adjustment is expected to decrease, which could provide some relief in the coming months. They also explained that Hydel power generation drops during winter, increasing reliance on expensive fuels, but production improves in summer, helping to reduce FCA.

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