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CPPA-G seeks 65 per increase in tariff for sugar mills power plants

by AMG
July 18, 2025
in Energy
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ISLAMABAD :  The country’s  hydropower generation witnessed an 14.5 in June 2025, reaching 5,410  GWh compared to 4,729  GWh in the same month last year. This accounted for 39.36 of total electricity generation.

According to data submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G) to the National Electric Power Regulatory Authority (NEPRA) for the determination of Fuel Charges Adjustment (FCA) for June 2025, total power generation stood at 13,784  GWh—reflecting a modest 2.12 rise from 13,459  GWh recorded in June 2024. The overall basket price of electricity during the month was Rs 7.8698  per unit, with total generation costs amounting to Rs 108.166  billion.

Electricity produced from local coal-fired plants amounted to 1,510  GWh in June 2025 as compared to 1,489/ Gwh showing an increase of 1.14 % —at a cost of Rs 11.5121  per unit. Imported coal generation surged 119 %, rising to 1,397  GWh (10.16 % share) from 637  GWh in the previous year, also at Rs 15.1600 per unit.

Residual Fuel Oil (RFO)-based generation was 151 Gwh in June 2025 as compared to 263 Gwh, indicating a  decline of 42.6 per cent at a rate of Rs 28.8873 / kWh.

Gas-fired plants generated 1,166  GWh (7.04 of the total) at Rs 12.3883  per unit—a 17 % drop from 968  GWh in June 2024. In contrast, RLNG-based generation amounted to 2,216  GWh (16.12 share) from 2,437 Gwh in June 2024  at a  cost of Rs 21.8716  per unit.

Nuclear power contributed 1,383  GWh, making up 10.06 % of the total, at a relatively low cost of Rs 2.4488  per unit. However, this marks a 3.08 decline from 1,998  GWh generated in June  2024. Electricity imported from Iran totaled 47 GWh at Rs 22.5155 per unit.

Bagasse-based generation recorded 35 GWh at a cost of Rs 9.8615  per unit. Wind and solar energy contributed 522  GWh (3.80 ) and 106 GWh (0.77 %), respectively.

The total gross electricity generated in June 2025 was 13,744  GWh—up 2.12 % from 13,459  GWh in June 2024. The gross basket price stood at Rs 7.8698  per unit, and the total cost of generation reached Rs 108.166  billion.

The CPPA-G has requested  a negative  fuel charge adjustment of 65.41  paisa per unit for June  2025 to refund Rs 8.7 billion to  consumers of Distribution Companies (Discos) under the monthly FCA mechanism.

However, after factoring in a previous negative adjustment of Rs 4.832 billion and an additional negative Rs 1.113  billion from electricity sales by Independent Power Producers (IPPs), the net electricity delivered to Discos was 13,310  GWh at a cost of Rs 7.6800  per unit—bringing the adjusted total to Rs 102.220  billion.

The CPPA-G has argued that since the reference fuel cost for June 2025 was Rs 7.6800 per unit and the actual cost came to Rs 8.3341  per unit, a negative adjustment of 65.41  paisa per unit is justified to refund to the consumers of Discos .

The National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a public hearing on the CPPA-G’s request on July 30, 2025.

Ends

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