Electricity Price May Drop by Rs 0.65 Per Unit | CPPA Proposal for June 2025
Good news for electricity users in Pakistan! The electricity price may drop by Rs 0.65 per unit for June 2025. This proposal was sent by CPPA-G to NEPRA, the official body that checks and approves power prices. If approved, people who got electricity in June will get a small relief in their future bills. This is part of the Fuel Charges Adjustment (FCA), which happens every month based on how electricity was made. NEPRA will decide this change after a public hearing on July 30, 2025.
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CPPA Proposal Details
The Central Power Purchasing Agency (CPPA-G) has asked NEPRA to reduce the electricity price by Rs 0.6535 per unit under the Fuel Charges Adjustment (FCA) for June 2025. This proposal was made because electricity production cost in June was lower than the reference fuel cost set earlier. CPPA is responsible for buying electricity from producers and selling it to distribution companies (DISCOs).
The FCA is a monthly practice where power rates go up or down based on how electricity was produced. In June 2025, cheaper fuel sources were used, which led to lower overall costs. Now CPPA wants to pass on that benefit to consumers.
Important Proposal Details:
| Item | Details |
|——|———|
| Proposal By | CPPA-G |
| To | NEPRA |
| Suggested Decrease | Rs. 0.6535 per unit |
| Applicable Month | June 2025 |
| Reason | Lower fuel cost |
If NEPRA accepts this, people will see a small cut in their upcoming electricity bills, especially those who received electricity in June.
NEPRA Public Hearing Schedule
To decide on the CPPA proposal, the National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on July 30, 2025. This is a standard procedure before approving any change in electricity prices under the Fuel Charges Adjustment (FCA).
The hearing gives a chance for stakeholders, consumers, and power companies to share their views. NEPRA will review the CPPA’s data, the fuel mix, and how much it cost to produce electricity in June. After this, NEPRA will announce its final decision.
Public Hearing Details:
| Item | Details |
|——|———|
| Authority | NEPRA |
| Purpose | Review CPPA’s FCA proposal |
| Date | July 30, 2025 |
| Type | Public hearing |
| Expected Decision | Soon after the hearing |
If approved, the new reduced tariff will be applied to August bills for units consumed in June 2025, except for lifeline and K-Electric customers.
Electricity Generation Overview – June 2025
In June 2025, Pakistan generated a total of 15,997 gigawatt-hours (GWh) of electricity. This was 6.9% more compared to the same month in 2024. The increase in electricity generation was due to better fuel availability and higher demand from homes and industries.
The average cost of electricity generation during this month was Rs. 8.32 per unit, which is Rs. 0.65 lower than the reference price of Rs. 8.97. This is the reason why the Central Power Purchasing Agency (CPPA) requested a reduction in consumer bills through the Fuel Charges Adjustment.
Electricity Generation by Source (June 2025):
| Source | % Share | Cost per Unit (Rs) |
|---|---|---|
| Hydropower | 25% | 0.23 |
| Coal (Local + Imported) | 15% | 15.00+ |
| RLNG | 20% | 22.00 |
| Nuclear | 18% | 1.25 |
| Wind & Solar | 10% | Free / Minimal |
| Furnace Oil | 5% | 30.00+ |
| Others | 7% | Varies |
Cheaper sources like hydropower and nuclear played a big role in keeping the cost per unit low in June. Expensive fuels like furnace oil and RLNG were used less due to better planning and fuel mix optimization.
Reasons Behind the Rs. 0.65/Unit Drop Request
The Central Power Purchasing Agency (CPPA) has officially requested NEPRA to reduce the electricity price by Rs. 0.65 per unit for June 2025. This request is part of the monthly Fuel Charges Adjustment (FCA) mechanism. The main reason for this proposed cut is the lower fuel cost used in power generation compared to the reference price.
In June, the actual average generation cost was Rs. 8.32 per unit, while the base reference cost set by NEPRA was Rs. 8.97 per unit. Because of this difference of Rs. 0.65, the CPPA says consumers should get relief in their electricity bills.
Main Reasons for Cost Reduction:
| Factor | Explanation |
|---|---|
| Cheaper Hydropower Usage | More water available for dam generation |
| Increased Nuclear Power Generation | Stable and low-cost energy source |
| Reduced Furnace Oil Usage | Less dependency on expensive oil-based fuel |
| Improved Energy Mix Planning | Better decision-making by CPPA & DISCOs |
This proposal does not apply to lifeline consumers or K-Electric customers, but most other users will benefit if NEPRA approves this cut.
NEPRA’s Public Hearing and Approval Status
NEPRA (National Electric Power Regulatory Authority) is the official body that reviews and approves fuel price adjustments every month. For the month of June 2025, NEPRA has received a formal request from CPPA to approve a Rs. 0.65/unit reduction in electricity rates under the Fuel Charges Adjustment (FCA).
NEPRA has scheduled a public hearing on this proposal for July 30, 2025. During this hearing, officials from power companies, consumer representatives, and experts will share their opinions and evidence. NEPRA will then decide if the proposal is fair and beneficial for consumers.
If approved, the revised rates will be adjusted in electricity bills for August 2025 (for June usage), but only for non-lifeline consumers of XW-DISCOs (ex-WAPDA distribution companies).
Key Points About NEPRA’s Review Process:
- Hearing Date: July 30, 2025
- Proposal: Rs. 0.65/unit decrease for June
- Applies To: Non-lifeline XW-DISCOs consumers
- Does Not Apply: Lifeline & K-Electric consumers
- Review Basis: Actual fuel costs vs. reference fuel cost
NEPRA will also consider cost transparency, consumer impact, and future sustainability while making the final decision.
Who Will Get the Relief & Who Won’t?
If NEPRA approves the proposal, not all electricity users will get the benefit of the Rs. 0.65/unit reduction. The relief is targeted specifically and depends on your consumer category and distribution company.
Let’s break it down:
Eligible Consumers (Will Get Relief):
| Category | Details |
|---|---|
| Non-Lifeline Consumers | Users who consume more than 100 units/month |
| XW-DISCOs Customers | Consumers served by ex-WAPDA Distribution Companies (e.g., LESCO, FESCO, MEPCO, IESCO, etc.) |
Non-Eligible Consumers (No Relief):
| Category | Reason |
|---|---|
| Lifeline Consumers | Already receive subsidized rates from the government |
| K-Electric Users | KE operates separately and has a different tariff system |
| Industrial & Agricultural Users | Usually governed under different tariff adjustment rules |
This targeted relief helps ensure that regular urban and semi-urban households under XW-DISCOs benefit the most from the Fuel Cost Adjustment (FCA) mechanism.
Tip: You can check your eligibility by looking at your monthly electricity bill—if it’s from a DISCO and not K-Electric, and you use over 100 units/month, you’re likely to benefit.
Estimated Impact on Monthly Electricity Bill
If the proposed drop of Rs. 0.65 per unit is approved, millions of consumers could see a small but meaningful reduction in their June 2025 electricity bills. Here’s what that looks like based on average usage:
Sample Monthly Impact Table
| Monthly Units Used | Previous Bill (Rs.) | New Estimated Bill (Rs.) | Savings (Rs.) |
|---|---|---|---|
| 200 units | 5,200 | 5,070 | 130 |
| 300 units | 7,800 | 7,605 | 195 |
| 500 units | 13,000 | 12,675 | 325 |
This reduction comes from the Fuel Cost Adjustment (FCA) and is calculated only on consumed units, not on fixed taxes or other surcharges.
Important Points to Remember:
- The relief may vary slightly based on regional tariffs.
- Taxes, meter rent, and duties remain unchanged.
- Only the per-unit fuel cost is adjusted, not the overall tariff.
Simple Example: If your bill says you used 400 units last month, you’ll save about 400 × 0.65 = Rs. 260 next month (if approved).
What Happens Next? NEPRA’s Role and Approval Timeline
Now that the CPPA has submitted the proposal, the next step is for NEPRA (National Electric Power Regulatory Authority) to review and conduct a public hearing. This process is mandatory before any price change can be officially implemented.
NEPRA Approval Process Breakdown:
| Step | Details |
|---|---|
| 1. CPPA Proposal Submission | Already done – requesting Rs. 0.65/unit reduction for June 2025 |
| 2. Public Hearing by NEPRA | Scheduled for July 30, 2025 |
| 3. Stakeholder Comments | Experts, consumers, and media give feedback on the proposed adjustment |
| 4. Final NEPRA Decision | NEPRA issues approval or rejection within a few days after the hearing |
| 5. Bill Adjustment Applied | If approved, consumers see the cut in next month’s electricity bill |
Why This Process Matters:
- It ensures transparency and accountability in power pricing.
- Consumers and media can question or support the proposal.
- NEPRA protects public interest by checking if the reduction is fair and justified.
Challenges and Real Impact for Consumers
While a Rs. 0.65/unit reduction sounds good, the real impact on consumers may be limited due to many ongoing issues in the power sector. This cut applies only to FCA (Fuel Cost Adjustment) and does not change the base electricity rates.
Major Challenges for Consumers:
| Challenge | Details |
|---|---|
| High Base Tariffs | Even with the FCA cut, base rates remain very high |
| Ongoing Power Outages | Many areas still face load shedding and voltage issues |
| Heavy Taxes in Electricity Bills | GST, TV fee, and other surcharges eat up any relief given |
| Limited Coverage of FCA Adjustment | Only applies to specific units and not to all types of consumers |
Realistic Impact:
Most domestic users who consume under 300 units will likely see a small decrease in July’s electricity bill. However, if fuel prices rise again, the FCA can increase next month.
Final Decision Date and What to Expect Next Month
The final decision on whether the electricity price may drop by Rs 0.65 per unit will be made by NEPRA shortly after the public hearing on July 30, 2025. Once the hearing is complete and all feedback is considered, NEPRA will issue a formal decision—usually within 3 to 5 working days.
If approved, the adjustment will apply to June 2025 electricity consumption, and the discount will show up in bills issued in August 2025.
What Can Consumers Expect Next Month?
| If Approved | If Not Approved |
|---|---|
| Rs. 0.65/unit relief applied | Bills remain unchanged |
| Lower August electricity bills | No reduction in fuel cost charges |
| Consumers feel partial relief | Disappointment among bill payers |
How to Stay Updated:
- Keep checking NEPRA’s website (www.nepra.org.pk) for announcements.
- Look for updates from your local DISCO (e.g., LESCO, FESCO, etc.)
- Watch for SMS notifications or bill notes indicating any changes
Pro Tip: If you’re using over 100 units/month and are under a WAPDA-linked company, you’re likely to benefit—so monitor your August bill closely!
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Conclusion
The proposal that Electricity Price May Drop by Rs 0.65 Per Unit | CPPA Proposal for June 2025 is a positive sign for electricity consumers in Pakistan. With lower fuel costs and better energy planning, there’s hope that electricity will become more affordable, even if for a short time.
If NEPRA approves this suggestion, millions of people could see reduced electricity bills in August 2025, helping ease some financial pressure. It’s important to stay updated with NEPRA’s decision after the public hearing on July 30, 2025.
This move also shows that changes in fuel prices, energy mix, and government policy play a big role in the prices we pay each month. Let’s hope for more such reductions in the future!
