ISLAMABAD: Amid a 7.6 per cent increase in power consumption in August over last year, the Central Power Purchasing Agency (CPPA) has sought around 19 paise per unit additional charges from consumers across the country on account of fuel price adjustment (FCA) in October despite 76pc generation from cheaper domestic, predominantly zero-cost fuel sources.

If approved, the consumers will have to pay an additional cost of about Rs2.6 billion to all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of October. The Nepra has called a public hearing on September 29 to examine the request for additional fuel charges.

The CPPA, which filed the petition for a positive fuel cost adjustment for August consumption, said the power consumption was around 7.6pc higher than the same month of last year and a negligible 0.35pc higher than the previous month, July. It reported that 13,715bn units (gigawatt hours) were delivered to Discos in August compared to 13,666 Gwh in July and 12,752 Gwh of august last year.

The power companies have claimed in their petitions that the average fuel cost amounted to Rs7.51 per unit in August 2025, compared to Rs8.81 per unit in the same month last year. The reference fuel cost for the month was earlier set at Rs7.31 per unit.

The CPPA said about 14,218GWh of electricity was generated, with an estimated fuel expenditure of Rs103.42bn (Rs7.274 per unit) in August, of which 13,715GWh of energy was delivered to Discos at a cost of Rs102.94bn (Rs7.51 per unit).

Hydropower retained its top position with a healthy 39pc share in the overall grid due to better water availability compared to about 41pc share in the same month last year. The second biggest contribution to the national grid came from RLNG at 15.33pc, followed by nuclear power at 15.1pc, and then local coal (10.14pc) and imported coal at 8pc. Domestic natural gas contributed about 7.28pc share to the grid.

The RLNG-based power generation turned out to be the most expensive among the major contributors, with its cost in August reported at Rs21.73 per unit, followed by Rs14.075 per unit from imported coal and Rs13.42 per unit on local gas. Local coal-based power generation cost came in at Rs12 per unit. Furnace oil-based electricity cost was worked out at Rs33 per unit, but its contribution to the grid was less than 1pc.

The nuclear fuel cost amounted to Rs2.19 per unit in August compared to Rs2.42 per unit in July this year and Rs1.49 per unit in August last year.

Published in Dawn, September 18th, 2025