Electricity Bills May Rise Rs2.56 Per Unit in September FCA

ISLAMABAD: Electricity consumers could face an additional charge of Rs2.56 per unit under the fuel charges adjustment (FCA) for September 2026.

Sources said the Central Power Purchasing Agency-Guarantee (CPPA-G) has requested an increase of Rs2.5624 per kilowatt-hour against the reference fuel cost of Rs7.4596 per unit for consumers served by ex-WAPDA distribution companies (XWDISCOs).

The National Electric Power Regulatory Authority (NEPRA) has fixed October 29 for a public hearing to examine the application submitted by CPPA-G.

If the proposal receives approval, the fuel charges component would rise to Rs10.0220 per unit, potentially increasing the financial strain on households and businesses already grappling with expensive electricity and higher living costs, according to sources.

Under the proposed rates, monthly consumption of 100 units would result in an additional charge of Rs256.24. Consumers using 200 units would pay Rs512.48 more, while those consuming 300 units would face an extra Rs768.72, excluding applicable taxes and other bill adjustments.

However, the precise effect on individual electricity bills would depend on the relevant billing treatment and NEPRA's final ruling.

The proposed increase remains unapproved and will be decided by NEPRA after reviewing the submitted figures and considering objections from interested parties.

CPPA-G data showed that electricity generation in September 2026 reached 13,217 gigawatt-hours (GWh), costing a total of Rs123.618 billion, or Rs9.3532 per unit.

Following adjustments from previous periods, the RLNG fuel-rate adjustment, electricity sales to independent power producers and transmission losses, net electricity supplied to distribution companies stood at 12,760 GWh.

The generation breakdown showed that imported coal produced 2,155 GWh at Rs17.2329 per unit, while locally sourced coal contributed 1,327 GWh at Rs5.9946 per unit.

Power generated through re-gasified liquefied natural gas (RLNG) totalled 804 GWh at Rs39.7372 per unit. Gas-based generation added another 1,066 GWh at Rs13.0414 per unit.

High-speed diesel-fired plants generated 213 GWh at Rs62.1381 per unit, whereas furnace oil-based power generation amounted to 263 GWh at Rs44.8613 per unit.

Nuclear power plants supplied 1,893 GWh at Rs2.9045 per unit. Hydropower contributed 4,834 GWh, representing 36.58% of total electricity generation.

The CPPA-G figures also included a previous adjustment of Rs16.376 billion, equivalent to Rs1.2390 per unit, alongside an RLNG fuel-rate adjustment of minus Rs10.617 billion, or minus Rs0.8033 per unit.

After accounting for the relevant adjustments, the net cost of electricity delivered was calculated at Rs127.876 billion, translating to Rs10.0220 per unit.

Under Section 31(7) of the NEPRA Act, 1997, and the monthly fuel price adjustment mechanism, the regulator can revise approved tariffs to reflect changes in fuel costs, in accordance with the applicable legal framework and federal government policy guidelines.

NEPRA will review the requested adjustment before reaching a final decision.

Sources further stated that federal government policy guidelines governing uniform fuel charges adjustments mean that the FCA determination for XWDISCO consumers would also extend to K-Electric customers.

Consequently, the final ruling could affect electricity consumers beyond those served by ex-WAPDA distribution companies.

NEPRA has invited interested and affected parties to present their objections during the scheduled public hearing.