ISLAMABAD: Consumers of electricity nationwide might soon see a rise in their charges, with a proposed increase of Rs1.73 per unit. This adjustment is being sought under the monthly fuel adjustment mechanism for the month of August.
The Central Power Purchasing Agency (CPPA) has submitted this request to the National Electric Power Regulatory Authority (Nepra), which is scheduled to review it on September 29.
If approved, this hike will also affect the customers of K-Electric (KE). The CPPA reported that in August, approximately 14.464 billion units of electricity were delivered to distribution companies (Discos) at an average rate of Rs8.82 per unit.
Electricity Generation Sources
In August, hydropower contributed to 37.84 percent of the total electricity generation. Additionally, local coal accounted for 10.88 percent, while imported coal made up 15.59 percent of the generation mix. The generation from furnace oil was recorded at 2.15 percent, local gas at 7.04 percent, and imported LNG provided 8.48 percent.
The CPPA indicated that the generation cost for electricity from furnace oil was Rs45.25 per unit, whereas the cost of power generated from imported LNG was slightly higher at Rs45.92 per unit.
Last month, Nepra had already placed a financial load of around Rs9.8 billion on electricity users due to a fuel cost adjustment allowance of 75.03 paise per unit in the bills for August.
Regulatory Decisions on Fuel Cost Adjustments
Nepra clarified that the positive fuel cost adjustment (FCA) for June 2026, set at Rs0.7503 per kilowatt-hour, would be applicable to all consumer categories served by KE and ex-Wapda distribution companies. However, exceptions were made for lifeline consumers, electric vehicle charging stations, and pre-paid electricity customers of all types who opted for the pre-paid tariff.
Moreover, the regulator specified that the increased FCA would also be relevant for those consumers utilizing the incremental consumption package. Distribution companies and KE were instructed to incorporate the fuel cost adjustment for June in the electricity bills distributed in August.
