Electricity tariffs for January 2025 will increase by Rs. 0.51 per unit compared to December 2024.
This hike comes as the federal government works on the early rebasing of the national tariff system and adjusting peak and off-peak timings. Despite this, fuel costs for power generation have remained below expected levels, with electricity generation being cheaper than during the peak summer season.
The Central Power Purchasing Agency (CPPA) has proposed a negative fuel cost adjustment (FCA) of Rs. 0.63 per unit for November consumption, which is a reduction from the Rs. 1.14 per unit negative FCA applied in December. However, this results in the tariff rising by Rs. 0.51 per unit for January.
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During a hearing led by NEPRA Chairman Waseem Mukhtar, inefficiencies within power companies were criticized, including an eight-month delay in Lahore-North grid projects and underutilization of the Matiari-Lahore Transmission Line. These issues force consumers to pay for unused capacity.
The CPPA reported Rs. 47 billion in partial load adjustment charges (PLAC) in 2023, which increased to Rs. 56 billion in 2024, due to unaffordable tariffs and the growing adoption of solar power. NEPRA has directed a technical study to assess changing demand patterns and has launched an inquiry into the delays in transmission projects.
