ISLAMABAD: Electricity consumers across Pakistan could soon see another increase in their Electricity Bill after the Central Power Purchasing Agency (CPPA) requested a new fuel cost adjustment from the National Electric Power Regulatory Authority (NEPRA).
According to the petition, the CPPA has asked NEPRA to approve a fuel cost adjustment (FCA) of Rs. 1.20 per unit for electricity consumed during June 2026.
If the proposal is approved, electricity users across the country will face an additional financial burden of more than Rs. 18 billion for one month.
The requested increase has been submitted under the monthly Fuel Charges Adjustment mechanism. This system allows electricity tariffs to change based on fluctuations in the fuel costs used for power generation.
As a result, the amount consumers pay in their Electricity Bill can rise or fall depending on the cost of producing electricity during a specific month.
NEPRA has scheduled a public hearing on July 29 to review the CPPA’s request. The regulator will examine the details of the petition before making a final decision.
If approved, the revised fuel cost adjustment will be applied according to NEPRA’s existing FCA rules and the relevant consumer categories.
The additional charge will affect eligible electricity consumers nationwide. However, the exact impact on individual consumers will depend on their electricity usage and the applicable tariff category.
Interestingly, the proposed increase comes despite a slight decline in the average fuel cost of electricity generation during June.
According to NEPRA data, the average fuel cost for electricity production fell by around 1 percent compared to the previous month. The average generation cost stood at approximately Rs. 9.0 per unit in June.
Despite the lower average fuel cost, the monthly adjustment process also considers the country’s overall fuel mix and cost recovery mechanism.
Different power plants use different fuel sources, including hydropower, imported coal, local coal, natural gas, LNG, furnace oil, solar, wind, and nuclear energy. Changes in the share of each source can affect the final adjustment.
The FCA system is designed to recover the actual cost of electricity generation from consumers. It also allows consumers to benefit when fuel costs decline during a particular month.
Over the past few years, monthly fuel cost adjustments have become a regular feature of electricity pricing in Pakistan. Depending on generation costs, consumers have experienced both increases and reductions in their monthly bills.
The latest proposal comes at a time when many households and businesses are already facing higher living costs. Any increase in the Electricity Bill could place additional pressure on household budgets and business expenses.
NEPRA will make its decision after completing the hearing process and reviewing the CPPA’s request. If approved, the revised fuel adjustment will be included in the Electricity Bill of eligible consumers according to the regulator’s notification.
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Consumers are now waiting for NEPRA’s final ruling, which will determine whether the proposed Rs. 1.20 per unit increase takes effect.
