ISLAMABAD: Electricity consumers across Pakistan may face an increase in power tariffs next month as power distribution companies have sought a Rs1.20 per unit Fuel Cost Adjustment (FCA) for August, citing higher electricity generation costs driven primarily by expensive imported fuels, particularly Regasified Liquefied Natural Gas (RLNG).
If approved by the National Electric Power Regulatory Authority (Nepra), the proposed adjustment will enable power utilities—including ex-Wapda distribution companies (Discos) and K-Electric—to recover approximately Rs15.7 billion from consumers through August electricity bills.
Nepra has scheduled a public hearing on July 29 to consider the petition.
The request was submitted by the Central Power Purchasing Agency (CPPA), which reported that electricity demand in June 2026 remained slightly lower than during the same month last year. Total power consumption stood at 13,066 million units, compared with 13,310 million units in June 2025.
According to the CPPA, the primary reason for the higher fuel cost was the sharp increase in RLNG prices. The fuel cost of RLNG-based electricity generation rose to around Rs35 per unit, almost double the Rs16 per unit recorded in June 2025.
The agency explained that the reference fuel cost for June 2026 had been set at Rs7.714 per unit, whereas the actual fuel cost reached Rs8.90 per unit, resulting in a gap that requires recovery of Rs1.20 per unit through the monthly FCA mechanism.
Fuel costs also increased due to limited electricity generation from furnace oil- and diesel-fired power plants, which produced electricity at approximately Rs52 per unit and Rs57 per unit, respectively. However, these high-cost sources together contributed less than one percent of the national electricity generation during the month.
Despite the proposed adjustment, Pakistan’s electricity generation mix continued to rely largely on relatively lower-cost domestic energy sources.
Hydropower remained the largest contributor, accounting for 39 percent of total electricity generation in June, followed by nuclear power (13.5 percent), local coal (10 percent), local natural gas (6.5 percent), wind (5 percent), solar (0.82 percent) and bagasse-based generation (0.35 percent).
The CPPA reported that electricity generated from local coal cost Rs11.5 per unit, compared with Rs16.65 per unit from imported coal. Electricity generated from local natural gas cost Rs13.7 per unit, while RLNG-based generation stood at Rs35.5 per unit. Nuclear power remained among the most economical sources, with a reported fuel cost of Rs2.85 per unit.
Nepra will decide on the proposed adjustment after hearing comments from stakeholders before issuing its final determination.
