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Power generation slashes by 5 % in July 2025 YoY basis

by AMG
August 21, 2025
in Energy
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Power Minister seeks justification of Moro-Matiari Transmission Line
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ISLAMABAD: The country’s electricity generation has slashed by 5 per cent to 14,123 GWh in July 2025 from 14,880 GWh in the corresponding month ( July) of 2024.
According to the data available with Newzshewz, hydropower generation witnessed a 6 growth in July 2025, reaching 5,668 GWh as compared to 5,341 GWh in the same month last year. This accounted for 40.31 per cent of total electricity generation.

Generation from local coal was negative 2 per cent, imported coal showed positive growth of 0.26 per cent, RFO 5.9 per cent, domestic gas negative 7.4 per cent, RLNG + 1.8 per cent, nuclear + 29.3 per cent and import from Iran was negative 36 per cent,
The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought negative adjustment of Rs 1.70 per unit in Fuel Charges Adjustment (FCA) for July 2025 to refund Rs 23 billion for consumers across the country including K-Electric.

The Nepra is scheduled to hold a public hearing on August 28, 2025 to seek further explanation from CPPA-G and give opportunity to consumers’ representatives to express their views on FCA adjustment data. According to data submitted to Nepra, in July 2025 hydel generation was recorded at 5,668 GWh – 40.13 percent of percent total generation. Power generation from local coal-fired power plants was 1,503 GWh in July 2025 which was 10.64 percent of total generation at a price of Rs 11.3477 per unit whereas 1,140 GWh was generated from imported coal at Rs 14.4986 per unit. Generation from HSD zero whereas 108 GWh were produced on RFO at a rate of 31.0533 per unit.

Electricity generation from gas-based power plants was 1.093 GWh (7.74 percent) at Rs13.3791 per unit. Generation from RLNG was 2,438 GWh (17.26 percent of total generation) at Rs 22.0310 per unit. Electricity generation from nuclear sources was 1,405 GWh at Rs 2.4210 per unit (9.95 percent of total generation), and electricity imported from Iran was 36 GWh at Rs 24.1492 per unit. CPPA-G, in its data has not mentioned numbers of generation from baggasse but sought adjustment of Rs 348 million as per revised pacts. Previously, CPPA-G had revised tariffs of baggasse to Rs 9.8651 per unit from approximately Rs 5 per unit. Energy generation from wind was recorded at 592 GWh (4.19 per cent) of total generation.

According to the CPPA-G, energy generated in July 2025 stood at 14,123 GWh at a total price of Rs 109.894 billion which was Rs 7.7811 per unit.
However, after inclusion of Rs 3.883 billion of previous adjustments at Rs 0.2750 per unit d Rs 1.923 billion negative adjustment as sale to IPPs and transmission losses of negative 409 GWh, the net delivered to Discos was recorded at 13,666 GWh at a rate of Rs 8.1848 per unit.
The CPPA-G argued that since the generation cost in July 2025 was recorded at 8.1848 /kWh against the reference rate of Rs 9.8758 /kWh, hence a negative adjustment of Rs 1.6911 /kWh for all categories of consumers should be approved.

According to CPPA-G, Power Division, in its letter of August 20, 2025, has submitted that Economic Coordination Committee (ECC) of the Cabinet on August 19, 2025, considered its summary with the following policy guidelines for approval of Cabinet ;(i) in order to maintain uniform tariff across the country, NEPRA shall determine application of fuel Charges Adjustment (FCAs) of Discos on KE consumers by way of tariff rationalization ;(ii) NEPRA shall determine the same tariff rationalization for K-Electric consumers as determined for Discos consumers, with same application period, keeping in view financial sustainability of the sector and uniform tariff policy of the Federal Government ;(iii) any difference between the monthly FCA rate determined for K-Electric and notified FCA be made available to K-Electric by way of subsidy or cross subsidy ; and iv) the uniform FCA application shall start from DISCOs FCA month of June 2025 to be charged in billing month of August 2025.

The Power Division has further submitted that considering urgency of the matter and in anticipation of process of FCA to be initiated by NEPRA, consideration of ECC is conveyed for further necessary action at NEPRA end.

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