Electricity prices likely to drop by Rs0.77 per unit in August

Islamabad: A further reduction of Rs0.77 per unit (including tax) in electricity prices is expected under the fourth quarterly adjustment and fuel price adjustment (FPA) mechanisms.

Electricity distribution companies submitted the application for the fourth quarterly adjustment of FY 2024–25 to NEPRA (National Electric Power Regulatory Authority), which held a hearing on August 4, 2025.

According to the hearing, the refund under this quarterly adjustment is expected to be Rs1.89 per unit (negative) in the electricity bills for August, September, and October.

The primary reasons for the negative quarterly adjustment are the amended agreements with power generation companies and increased electricity demand, made possible due to lower tariffs and shifting of captive power plants to the national grid.

As a result, electricity bills for August are expected to reflect a further Rs0.34 per unit reduction under the quarterly adjustment.

Meanwhile, the application for June 2025's Fuel Price Adjustment was submitted to NEPRA by CPPA (Central Power Purchasing Agency) on July 16, 2025, with the hearing held on July 30, 2025.

As per the hearing, a Rs0.78 per unit reduction is expected in the August bills under the fuel price adjustment. In July bills, consumers had already received Rs0.50 per unit in negative FPA.

Thus, an additional Rs0.28 per unit reduction is expected in electricity bills for August 2025 under the fuel price adjustment.