ISLAMABAD:
Electricity consumers across Pakistan could face another increase in power bills next month after power companies requested a fuel cost adjustment (FCA) of Rs 1.20 per unit of fuel for August, citing higher generation costs largely driven by expensive imported fuels, particularly regasified liquefied natural gas (RLNG).
If approved by the National Electric Power Regulatory Authority (Nepra), the proposed adjustment will allow power companies, including former distribution companies Wapda (Discos) and K-Electric, to recover an additional Rs 15.7 billion from consumers until August electricity bills.
Nepra scheduled a public hearing on July 29 to examine the request.
The petition was filed by the Central Power Purchasing Agency (CPPA), which said electricity demand in June 2026 was marginally lower than the corresponding month last year.
According to the agency, energy consumption stood at 13,066 million units in June this year, compared to 13,310 million units in June 2025.
According to the CPPA, the main factor behind the increase in fuel costs was the sharp increase in RLNG prices. The fuel cost of RLNG-based generation has risen to about Rs 35 per unit, almost double the Rs 16 per unit recorded in June last year.
The agency said the benchmark fuel cost for June 2026 had been set at Rs 7,714 per unit, but the actual cost reached Rs 8.90 per unit, creating a gap that requires recovering an additional Rs 1.20 per unit from consumers through the monthly FCA mechanism.
Fuel costs have also increased due to limited reliance on furnace oil and diesel fueled power plants, which generated electricity at around Rs 52 per unit and Rs 57 per unit, respectively.
However, together they represented less than one percent of the national electricity supply.
Despite the proposed increase, the country’s generation mix remained dominated by relatively cheaper domestic sources. Hydropower, which carries no fuel costs, contributed 39 percent of total electricity generation in June.
Local coal accounted for 10 percent, local gas 6.5 percent and nuclear power 13.5 percent, while wind power contributed 5 percent, solar power 0.82 percent and bagasse-based generation 0.35 percent.
The CPPA reported that electricity generated from local coal costs Rs 11.5 per unit, compared to Rs 16.65 per unit with imported coal. Local gas generation cost Rs 13.7 per unit, while RLNG-based generation cost Rs 35.5 per unit. Nuclear power remained among the least expensive sources, with a fuel cost of Rs 2.85 per unit.
