Electricity tariff may increase by 48 paisa/unit

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The minister called on international partners to invest in the nationwide deployment of advanced metering infrastructure (AMI), estimating the need at $3 billion to serve more than 30 million consumers. PHOTO: File

ISLAMABAD:

Electricity consumers in Pakistan may face an additional charge of 48 paisa per unit due to the 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 filed by the Central Power Purchasing Agency (CPPA).

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, compared to 2.4 billion units in December 2025.

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

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

However, NPCC officials said that despite higher demand, solar power is gradually reducing grid consumption, especially during the day. They revealed that 9,000 to 10,000 megawatts of electricity are now produced daily through net metering, affecting demand from the national grid.

During the hearing, industrial consumers strongly criticized the proposed increase. They argued that electricity prices are already too high and further adjustments would harm competitiveness. “Instead of reducing electricity prices, a hidden increase is imposed,” a representative said, 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 decreases in winter, increasing dependence on expensive fuels, but production improves in summer, which helps reduce FCA.

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