Get Ready for Another Electricity Price Increase Thanks to Fuel Adjustment

Pakistan's electricity consumers could soon experience another rise in their monthly bills, as the National Electric Power Regulatory Authority (NEPRA) prepares to evaluate a potential Rs. 2.52 per unit tariff hike for July 2026. This proposed increase is part of the monthly fuel cost adjustment mechanism and stems from a request filed by the Central Power Purchasing Agency (CPPA). NEPRA is set to review the CPPA's submission today, with a decision on the final adjustment to be made.

According to the CPPA's application, electricity generation expenses remained elevated in July. Power produced via diesel reached up to Rs. 50 per unit, while coal-based generation from imports hit Rs. 54.47 per unit. Electricity generated from imported LNG cost Rs. 47.37 per unit during the same period. The suggested Rs. 2.52 per unit increase would only be applicable for a single month if approved by NEPRA. The ultimate effect on consumers hinges on NEPRA's decision.

Notably, NEPRA had previously approved a Rs. 0.75 per unit increase under the June 2026 monthly fuel adjustment. This June adjustment became effective in the electricity bills distributed in August.