ISLAMABAD – April 30, 2025: Despite plans for temporary relief in electricity bills, Pakistani consumers may face a hike in electricity tariff during the upcoming summer months, government officials revealed during a public hearing convened by the National Electric Power Regulatory Authority (Nepra).
Representatives from the National Power Control Centre (NPCC) and Central Power Purchasing Agency – Guaranteed (CPPA-G) cited reduced hydropower output and increased dependence on costly thermal energy as the main reasons for the expected increase. With water levels at Tarbela and Mangla dams lower than usual and the Neelum-Jhelum hydropower project non-functional, hydroelectric generation will likely drop this summer, pushing the power system to rely more heavily on expensive fuels.
While CPPA-G has requested a 3 paisa per unit negative adjustment in March’s Fuel Cost Adjustment (FCA), combined with an earlier approved 90 paisa per unit cut for April through June, the net relief to consumers will only be around 50 paisa per unit — and that too, not extended to lifeline consumers. Nonetheless, officials warned that the electricity cost burden may rise due to increasing FCA in summer months.
At the same session, CPPA-G also proposed a Rs 1.52 per unit reduction under the Quarterly Tariff Adjustment (QTA) for the third quarter of FY2024-25. The cumulative QTA relief amounts to Rs 51.5 billion, with Rs 47 billion saved through capacity charge reductions, contract terminations, and renegotiated deals with Independent Power Producers (IPPs). However, critics say this short-term relief may be outweighed by expected tariff increases ahead.
Nepra Chairman Waseem Mukhtar expressed frustration over the absence of senior officials from the Power Division and distribution companies such as HESCO, MEPCO, and PESCO, stating the regulatory process cannot operate without full accountability. He instructed immediate action, including formal summons.
Industry stakeholders, including Tanveer Barry from the Karachi Chamber of Commerce and Industry (KCCI), voiced concerns over the government’s strategy. Barry warned that reliance on new commercial borrowing to reduce circular debt would only shift the burden onto law-abiding consumers. He emphasized that electricity in Pakistan remains costlier than in neighboring countries and stressed the need to reduce the base tariff before the new fiscal year begins.
Amir Sheikh and Arif Bilwani also questioned the use of freed indigenous gas, especially from Sindh, after the forced transition of captive power plants to the national grid. They criticized the lack of benefit to industry and demanded transparency and larger FPA refunds.
As Pakistan heads into summer, the mixed signals — some relief, but strong warnings of rising electricity costs — have left consumers and businesses bracing for what could be a difficult summer in terms of tariff pressures and energy affordability.