In a bid to pass relief to electricity users, state-owned power distribution companies (Discos) have proposed a Rs1.691 per unit refund in electricity bills for September.

 

According to reports, Discos have outlined a drop in fuel charges in July 2025 as the primary reason behind their proposal for the refund.

 

The Central Power Purchasing Agency (CPPA) submitted the aforementioned proposal to the National Electric Power Regulatory Authority (NEPRA) as part of the monthly Fuel Charges Adjustment (FCA) framework.

 

While the relief package has not yet been approved by NEPRA, reports reveal that a public hearing has been scheduled for August 28, wherein relevant stakeholders will determine if the amount requested by Discos for the refund is in line with the economic merit order.

 

Details included within the petition reveal that domestic electricity generation during July stood at 14,123 gigawatt-hours (GWh) at an average cost of Rs7.781 per unit. This translates into the monthly fuel cost coming out to just Rs109.89 billion.

 

Reports suggest, however, that the per-unit cost of electricity, once delivered to discos from power generation sources, rose to Rs8.1848 per unit. This was due to a 2.95 percent transmission loss, which resulted in discos receiving only 13,666 GWh of power, down from the 14,123 GWh that were initially generated.

 

The cost of Rs8.1848 per unit of electricity also includes a charge of Rs0.275 to cover for Rs3.883 billion in revenue shortfalls that Discos experienced in the previous periods. RLNG-based electricity generation proved to be a costly method of power generation with the per unit cost standing at a staggering Rs22.03 per unit.

 

However, reports suggest that residual furnace oil (RFO) based power generation remained the least economical method of electricity generation, with a per unit cost of Rs31.053. Conversely, nuclear power plants reportedly managed to generate electricity at a fraction of the price, with the per unit cost sitting at a manageable Rs2.42 per unit. 

According to the data, coal power plants managed to attain an electricity generation cost per unit of Rs11.347 and Rs14.498 for domestic and imported coal respectively. The proposal to pass relief to consumers comes after (NEPRA) announced a quarterly tariff relief of Rs1.8881 per unit earlier this month, for the period spanning August 2025 to October 2025.