Pakistan’s power sector achieved a historic milestone in November as hydropower generation surged to 3,153 GWh, marking a 10.2 per cent year-on-year increase and the highest-ever hydel output recorded for the month. The sharp rise in low-cost hydropower significantly reduced overall fuel costs, prompting power distribution companies to seek a negative fuel cost adjustment (FCA) of Rs0.72 per unit for consumers.
Total electricity generation during November stood at 8,050 GWh, marginally higher than 8,032 GWh recorded in the same month last year. However, generation declined 19 per cent compared to October, largely due to seasonal moderation in electricity demand.
On a cumulative basis, power generation during the first five months of FY26 reached 58,869 GWh, remaining broadly flat compared to the corresponding period of the previous fiscal year.
Hydel and nuclear power dominated the generation mix during the month, while output from RLNG-based plants dropped 23.3 per cent year-on-year. Coal-based generation also remained below projections. Analysts noted that total generation was still around 1 per cent below the reference level set by the National Electric Power Regulatory Authority (Nepra), reflecting the impact of rising distributed generation and subdued system demand.
Lower international prices of oil and coal, coupled with a higher share of hydropower, pushed the adjusted fuel cost down to Rs6.16 per unit, well below the reference cost of Rs6.88 per unit.
Analysts expect electricity generation in December to remain stable, with sustained hydel output continuing to support lower fuel costs and a healthier, more balanced energy mix.
