# Power Generation Fuel Cost Jumps 38% in July, CPPA-G Seeks Rs2.52/Unit FCA
**ISLAMABAD:** The fuel cost of electricity generation surged **38 percent year-on-year (YoY)** in July 2026, reaching **Rs10.8821 per unit** compared with Rs7.7811 per unit in July 2025, driven largely by higher costs of RLNG, residual fuel oil (RFO) and other fuels.
According to generation data submitted by the **Central Power Purchasing Agency-Guaranteed (CPPA-G)** to the **National Electric Power Regulatory Authority (NEPRA)**, total electricity generation increased by 7 percent YoY to **15,122 GWh** in July 2026, compared with 14,123 GWh a year earlier.
Electricity supplied to consumers rose 6 percent to **14,501 GWh** from 13,666 GWh, while the average price increased by **17.5 percent** to Rs9.6112 per unit from Rs8.1848 per unit.
CPPA-G has sought a **positive adjustment of Rs2.52 per unit** under the monthly Fuel Charges Adjustment (FCA) mechanism for July 2026. If approved, the adjustment would result in an additional recovery of approximately **Rs36.54 billion** from consumers of power distribution companies (Discos) and K-Electric.
NEPRA is scheduled to hold a **public hearing on August 27, 2026** on CPPA-G’s request.
### Hydel Generation Leads Power Mix
Hydropower remained the largest source of electricity generation during the month, with output increasing **6.2 percent** to 6,019 GWh from 5,668 GWh in July 2025. Hydel power accounted for **39.81 percent** of total generation.
Coal-based generation rose 9.8 percent to **1,650 GWh** from 1,503 GWh, while its generation cost increased sharply to **Rs16.3348 per unit**, compared with Rs11.3477 per unit a year earlier.
RFO-based generation almost doubled, rising to **215 GWh**, or 1.42 percent of total generation, from 108 GWh in July 2025. Its generation cost jumped **61 percent** to Rs50.0756 per unit from Rs31.0533 per unit.
HSD-based plants generated **31 GWh** at a cost of Rs54.4796 per unit, compared with no HSD-based generation during July 2025.
### RLNG Cost More Than Doubles
Gas-based generation declined 9.4 percent to **990 GWh** from 1,093 GWh, with the average generation cost standing at Rs13.7717 per unit.
RLNG-based generation fell significantly by **33.2 percent** to 1,629 GWh from 2,438 GWh. Despite the decline in output, the cost of RLNG-generated electricity more than doubled, rising **115 percent** to Rs47.3798 per unit from Rs22.0310 per unit.
Nuclear generation increased 8.7 percent to **1,527 GWh** from 1,405 GWh, while its generation cost rose 25 percent to Rs3.0299 per unit from Rs2.4210 per unit.
Electricity imported from Iran stood at **58 GWh** at Rs26.2183 per unit, compared with 36 GWh at Rs24.1492 per unit in July 2025.
Meanwhile, wind power generation stood at **682 GWh**, bagasse-based generation at 46 GWh and solar generation at 106 GWh during the month.
### Basket Price Rises Sharply
The total generation of 15,122 GWh carried a **basket price of Rs10.7495 per unit**, reflecting a substantial increase in generation costs despite only a 7 percent rise in electricity output.
CPPA-G also sought a previous negative adjustment of **Rs21.720 billion**, with the FCA cost calculated at Rs1.4363 per unit. The sale to independent power producers (IPPs) was reduced by 26 GWh, carrying a negative value of Rs1.459 billion, while a reduction in transmission losses of 594 GWh was valued at Rs0.3784 per unit.
According to CPPA-G data, net electricity delivered to Discos during July stood at **14,501 GWh**, valued at **Rs139.370 billion**, at an average rate of Rs9.6112 per unit.
In its tariff adjustment request, CPPA-G stated that the **reference fuel charge for July 2026 was Rs7.0929 per unit**, against an actual fuel charge of Rs9.6112 per unit.
It has consequently sought an increase of **Rs2.52 per unit** under the monthly FCA mechanism, which will now be considered by NEPRA at its scheduled public hearing.
Story by Mushtaq Ghumman
