ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday took serious notice of 11 rain-related fatalities in July, mostly due to electrocution, as it held a public hearing on a proposed Rs1.69 per unit refund to consumers on account of cheaper fuel costs than charged in the same month.

The hearing was convened on a petition by the Central Power Purchasing Agency (CPPA) seeking a negative fuel cost adjustment (FCA) worth Rs23 billion. Nepra was informed that the federal government had decided to apply uniform FCA across the country, including to Karachi Electric (KE) consumers.

At the hearing, Karachi-based consumers strongly criticised the uniform application of FCA, pointing out that KE’s estimated adjustment was nearly Rs10 per unit lower than that of the national grid. They noted that Nepra had not yet taken up KE’s separate FCA petitions for May and June.

Discos propose Rs1.69 tariff cut for July; Karachi consumers decry uniform FCA despite lower KE costs

They acknowledged that Karachi’s consumers had long demanded uniform tariffs, including during periods when their FCA was higher than the rest of the country. Even so, they argued that the present uniformity came at their expense and ignored KE’s relatively lower fuel costs. Nepra officials responded that the situation was temporary and differences would eventually balance out across all distribution companies.

Safety concerns

During the session, Nepra’s Member (Technical) Rafique A. Shaikh expressed alarm over the loss of 11 lives in July, including six in the Islamabad Electric Supply Company’s (Iesco) jurisdiction. He remarked that basic safety measures appeared absent and referred the matter to the Power Division, noting that Nepra could only impose fines that were usually stayed in courts by power companies.

Generation trends

The CPPA reported that power consumption in July was about 5pc lower than in the same month last year but 2.6pc higher than in June. It said 13,666 gigawatt hours (GWh) were delivered to distribution companies in July, compared to 13,310 GWh in June and 14,410 GWh in July 2024.

Electricity generation stood at 14,123 GWh at a fuel cost of Rs109.9bn, or Rs7.78 per unit. Of this, 13,666 GWh were delivered to Discos at Rs111.86bn, translating into an average cost of Rs8.18 per unit — lower than the reference tariff of Rs9.88 per unit and also below the Rs9.04 per unit recorded in July last year.

Fuel mix

Hydropower accounted for the largest share of generation at 40pc in July, up from 36pc last year due to better water availability. RLNG contributed 17.3pc, followed by local coal (10.6pc), nuclear (10pc), and imported coal (8pc). Domestic natural gas made up 7.7pc of the mix.

RLNG was the most expensive among major fuels at Rs22 per unit, while imported coal cost Rs14.49 per unit, local gas Rs13.38, and local coal Rs11.34. Furnace oil was the priciest at Rs31 per unit but contributed less than 1pc to the grid.

Nuclear generation cost Rs2.42 per unit in July, compared to Rs1.48 per unit a year earlier. Wind and solar combined contributed 4.8pc at no fuel cost. There was no generation from bagasse-based plants, while electricity imported from Iran made up 0.25pc of supply at Rs24.15 per unit, slightly higher than June.

Published in Dawn, August 29th, 2025