Islamabad: Power generation in May 2025 saw a modest increase, according to the latest data released by the National Electric Power Regulatory Authority (NEPRA). The monthly output reached 12,755 gigawatt-hours (GWh), marking a 1% year-on-year growth. Over the first eleven months of the fiscal year, total power generation marginally decreased by 0.3% year-on-year, totaling approximately 113,416 GWh.

On a quarter-on-quarter basis, power generation rose by 21%. This increase was primarily driven by rising summer demand, reduced tariffs, and greater industrial reliance on grid electricity. During this period, hydel energy emerged as a major contributor, accounting for 38% of May's energy mix, up from 22% in the previous month.

The average cost of power generation in May 2025 was Rs7.5 per kilowatt-hour (kWh), reflecting a significant decrease of 18% year-on-year. Sequentially, the average cost fell by 16%.

NEPRA announced a reduction in the base tariff to Rs34 per unit for the fiscal year 2026, a decrease of 4.2% year-on-year. This change is attributed to lower capacity payments following the termination of independent power producer contracts. The tariff adjustment considers an expected 2.8% growth in demand, underpinned by economic recovery and a transition from captive power to the grid.