Summer power bills to climb as hydel output falls, fuel costs rise

ISLAMABAD: The government on Tuesday warned of potential increases in electricity rates during the summer months due to reduced hydropower generation and increased reliance on expensive fuels.
This information was shared by the General Manager of the National Power Control Centre (NPCC) during a public hearing on the Fuel Cost Adjustment (FCA) request submitted by distribution companies (Discos) for March 2025.
The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has requested a negative adjustment of 3 paisa per unit in the FCA. However, when combined with the previously approved 90 paisa per unit for the months of April, May, and June 2025, the net negative impact will be 50 paisa per unit.
The NPCC General Manager clarified that while there will be no shortage in power generation—thanks to adequate fuel arrangements—the FCA will increase due to the use of costlier fuels.
During the hearing, CPPA-G Chief Executive Officer Rihan Akhtar supported the NPCC’s assessment regarding the expected rise in FCA.
Arif Bilwani raised several questions about the government’s future power generation plans, FCA structure, and the arrangements made by relevant agencies.
Amir Sheikh pointed out that while captive power plants have been compelled to switch to the national grid, freeing up indigenous gas and RLNG—particularly from Sindh and Khyber Pakhtunkhwa—this gas has not been allocated to Independent Power Producers (IPPs) or other sectors. As a result, he argued, the industry has not received any benefits in the form of increased FPA (Fuel Price Adjustment) refunds.
He further questioned where the diverted gas has been used and emphasized that the industry should benefit from it through a higher FPA refund.
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