Electricity users face Rs25bn extra fuel cost

Islamabad: The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on October 5 to review the incremental tariff package for industry, introduced in December 2025, as consumers face an additional Rs25 billion in fuel costs for the October bills. The decision comes after the CEO of Central Power Purchasing Agency (CPPA), Rehan Akhtar, revealed that the major reason for the Rs1.73 per unit additional fuel cost in August was expensive RLNG and coal imports, as well as lower-than-estimated availability of cheaper hydropower and nuclear facilities.

Due to the reduced hydropower generation (38pc) and lower nuclear power share (10pc), the share of imported coal-based generation increased to 15.6pc, which was higher than the originally planned 7.4pc. Nepra noted that the government provided a negative adjustment of over Rs10bn due to a special reduced rate of RLNG, which otherwise would have resulted in an additional fuel cost of around Rs35bn.

The Power Division's Naveed Qaiser added that additional fuel costs would have been higher but were contained through an average daily load management for about one and a half hours during August. Industrial representatives, mostly from Karachi, reiterated their demand for the IMF to suspend or reduce the petroleum levy on furnace oil, citing the war in the region and its impact on imported fuels.

Nepra member Amina Ahmed announced that a public hearing would be held on October 5 to review the incremental consumption package, which was initially promised to be reviewed after six months but has remained unchanged for nine months.