Power Bills May Rise After Fuel Cost Adjustment Request

Electricity consumers across Pakistan may experience an increase in power tariffs as distribution companies (DISCOs) have approached the National Electric Power Regulatory Authority seeking approval for a fuel cost adjustment of Rs1.64 per unit, reflecting fuel expenses incurred during February 2026.

The Central Power Purchasing Agency (CPPA-G) has formally submitted a petition requesting an upward revision of Rs1.6406 per kilowatt-hour. If sanctioned, this adjustment will have a direct financial impact on residential, commercial, and industrial electricity consumers nationwide.

During February, a total of 7,696 GWh of electricity was generated through a diversified energy mix. Hydropower contributed 1,783 GWh (23.16%), followed by nuclear generation at 1,449 GWh (18.83%). Local coal accounted for 1,231 GWh (15.99%), while imported coal contributed 1,150 GWh (14.95%). Gas-based generation stood at 887 GWh (11.52%), and RLNG contributed 729 GWh (9.47%). Additional contributions were recorded from wind (251 GWh), solar (92 GWh), bagasse (91 GWh), and imported electricity from Iran at 35 GWh.

The cost of electricity generation varies significantly depending on the fuel source, with RLNG and imported power representing higher-cost inputs, whereas hydel and nuclear sources remain comparatively economical. After accounting for transmission losses, prior adjustments, and sales to independent power producers, a net 7,427 GWh was supplied to distribution companies at an average cost of Rs8.3743 per unit.

NEPRA has scheduled a public hearing on March 31, 2026, at its headquarters to assess the proposed adjustment.

During the proceedings, the regulator will evaluate the justification for the requested increase in light of consumer affordability considerations. The final determination is expected to have a substantial impact on electricity tariffs across the country, directly affecting the billing structure for millions of consumers.