NEPRA to Hear Rs1.20 Electricity Tariff Increase Proposal

Regulatory Update: Electricity consumers across Pakistan may face a Rs1.20 per unit increase in electricity tariffs following the National Electric Power Regulatory Authority (NEPRA)'s decision to conduct a public hearing on the Central Power Purchasing Agency-Guarantee Limited (CPPA-G)'s request for the June 2026 Fuel Charges Adjustment (FCA).

The hearing has been scheduled for July 29 to evaluate CPPA-G’s application seeking approval for an upward adjustment of Rs1.20 per kilowatt-hour on electricity supplied through the former WAPDA distribution companies (XWDISCOs).

The proposed adjustment has been filed under the monthly fuel cost adjustment mechanism prescribed by the NEPRA Act, 1997, reflecting the variance between the actual fuel cost incurred during June 2026 and the reference fuel cost already incorporated into the notified consumer tariff.

According to data submitted by CPPA-G, total electricity generation during June 2026 reached 13,431 gigawatt-hours (GWh) at an average fuel cost of Rs8.9885 per unit.

Following adjustments for previous recoveries, electricity supplied to independent power producers, and transmission losses, the net energy delivered to distribution companies stood at 13,066GWh, resulting in an effective fuel cost of Rs8.9138 per unit.

Based on these figures, CPPA-G has requested NEPRA to approve a Rs1.20 per unit increase over the existing reference fuel cost of Rs7.7138 per unit currently included in consumer electricity tariffs.

Subject to NEPRA’s approval, the revised Fuel Charges Adjustment will also be applicable to K-Electric consumers in accordance with the Federal Government’s Uniform Fuel Cost Adjustment Policy.

Hydropower remained the country's largest source of electricity generation during the month, producing 5,242GWh, representing 39.03% of total generation. As hydropower does not involve fuel consumption, no fuel cost was recorded for this source.

Imported coal accounted for 1,699GWh, or 12.65% of total generation, with a fuel cost of Rs16.6524 per unit, while electricity generated from local coal totaled 1,358GWh, representing 10.11% of total output, at a fuel cost of Rs11.4629 per unit.

Nuclear energy contributed 1,800GWh, accounting for 13.40% of overall electricity generation, with a comparatively low fuel cost of Rs2.8501 per unit, making it one of the most economical conventional generation sources during the month.

RLNG-based power plants generated 1,480GWh, representing 11.02% of total electricity generation, at a fuel cost of Rs35.5087 per unit, whereas natural gas-fired plants contributed 867GWh, or 6.45%, at Rs13.6820 per unit.

Among renewable energy sources, wind generated 676GWh (5.03%), while solar contributed 110GWh (0.82%). Neither source incurred any fuel cost.

Electricity imported from Iran totaled 47GWh (0.35%) at a fuel cost of Rs27.6635 per unit. Bagasse-based generation contributed 46GWh (0.35%) with a fuel cost of Rs10.8821 per unit.

Residual furnace oil-based generation remained limited at 100GWh (0.74%) but recorded a fuel cost of Rs52.0900 per unit, while high-speed diesel generation accounted for only 5GWh (0.04%), remaining the most expensive generation source at Rs57.2388 per unit.

NEPRA has invited consumers, industry participants, and other stakeholders to submit their views during the public hearing at NEPRA Tower before issuing its final determination on the proposed June 2026 Fuel Charges Adjustment.