{"id":11343,"date":"2025-08-22T14:38:45","date_gmt":"2025-08-22T09:38:45","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11343"},"modified":"2025-08-22T14:38:48","modified_gmt":"2025-08-22T09:38:48","slug":"which-companies-benefit-most-from-the-drop-in-power-costs-and-who-takes-a-hit","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/which-companies-benefit-most-from-the-drop-in-power-costs-and-who-takes-a-hit\/","title":{"rendered":"Which companies benefit most from the drop in power costs? And who takes a hit?"},"content":{"rendered":"\n<p>In July 2025, the cost of generating electricity in Pakistan fell by <strong>14% year-on-year<\/strong>, coming down to Rs 8.18 per unit compared to Rs 9.49 last year. This is a big deal for industries because electricity is one of their largest expenses.<\/p>\n\n\n\n<p>So, who benefits from this drop?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Winners: Industries that use a lot of power:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cement companies<\/strong> like DG Khan, Lucky, and Cherat, cement production require huge kilns that consume massive energy. Lower power costs improve their margins.<\/li>\n\n\n\n<li><strong>Steel makers<\/strong> such as Mughal Steel and Amreli, melting scrap and running furnaces, are highly electricity-intensive. Cheaper power directly boosts their profitability.<\/li>\n\n\n\n<li><strong>Automobile manufacturers<\/strong>: cheaper power helps reduce factory running costs, supporting a sector already rebounding strongly.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Who takes a hit?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Independent Power Producers (IPPs):<\/strong> These companies sell electricity to the grid at rates linked to their generation costs. When overall generation costs fall, their tariffs and revenues can also take a hit.<\/li>\n\n\n\n<li>Companies relying on <strong>high-cost fuels like RLNG and Furnace Oil<\/strong> may see reduced competitiveness, as coal and hydel power become cheaper alternatives.<\/li>\n<\/ul>\n\n\n\n<p>In short, <strong>industrials win big from cheaper electricity, while some power producers feel the squeeze.<\/strong><\/p>\n\n\n\n<p>Now the big question for investors: will this trend of lower costs continue, and how much of it will companies pass on to customers versus keeping as higher profits?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In July 2025, the cost of generating electricity in Pakistan fell by 14% year-on-year, coming down to Rs 8.18 per unit compared to Rs 9.49 last year. This is a big deal for industries because electricity is one of their largest expenses.<\/p>\n","protected":false},"author":9252,"featured_media":9348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153],"tags":[319,274,277,299],"class_list":["post-11343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-auto-sector","tag-cement-sector","tag-power-sector","tag-steel-industries"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks12-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks12-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks12-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks12.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11343"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11343\/revisions"}],"predecessor-version":[{"id":11344,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11343\/revisions\/11344"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/9348"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}