Consumers to Pay Rs1,952bn in Capacity Charges in FY25

electricity price increased

ISLAMABAD: In the fiscal year 2025, electricity consumers will face a significant burden, paying Rs1,952 billion in capacity charges. This amount will contribute Rs18.39 per unit to the new power purchase price (PPP) of Rs30.88 per unit.

For the outgoing fiscal year, the capacity charges revenue target was Rs1,874 billion, with consumers paying Rs17.02 per unit until June 30, 2024. According to a NEPRA communiqué sent to the government, the power purchase price for distribution companies (Discos) has increased by Rs4.86 per unit (18.677%) from Rs26.02 in FY24 to Rs30.88 per unit for FY25.

Consumers will also pay Rs1,161 billion in energy charges during FY25, contributing Rs10.94 per unit to the power purchase price. An additional Rs153.755 billion will be paid, contributing Rs1.54 per unit to the power purchase price of Discos.

The base tariff has increased by Rs5.72 per unit, with energy charges contributing Rs3.31 per unit and capacity charges Rs1.38 per unit. The outgoing fiscal year saw a base tariff increase of Rs4.96 per unit, which has now risen to Rs5.72 per unit, marking a 15.32% increase. The Discos margin is Rs0.58 per unit, including prior years’ adjustments of Rs0.27 per unit.

With the new base tariff set at Rs35.50 per unit, Discos are projected to earn Rs3.767 trillion in FY25, up from Rs3.281 trillion with the base tariff of Rs29.78 per unit set for FY24.

Story by Khalid Mustafa

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