October Electricity Bills May Increase

Electricity customers in Pakistan may encounter another hike in their October 2026 utility bills following the Central Power Purchasing Agency's (CPPA) request to recover Rs. 1.7267 per unit of fuel costs from consumers. The request, submitted to the National Electric Power Regulatory Authority (NEPRA), pertains to fuel charges for electricity generated in August and will be reviewed on September 29.

If approved, the adjustment will apply to both ex-WAPDA distribution companies and K Electric customers. The proposed charge is based on the discrepancy between the reference fuel cost of Rs. 7.0998 per unit for August billing and the actual cost of Rs. 8.8265 per unit. This increase builds upon the Rs. 2.058 per unit adjustment already incorporated in September bills due to the July fuel charges adjustment.

Despite higher overall electricity production, power generation costs surged 37.63 percent in August, with the average generation cost rising to Rs. 10.0114 per unit from Rs. 7.2738 per unit a year prior. The rise in generation costs was mainly driven by RLNG, whose price for electricity jumped 111 percent to Rs. 45.928 per unit.

Nuclear generation also became more expensive, increasing 43.3 percent to Rs. 3.1468 per unit despite a 28.76 percent drop in output. Imported coal generation expanded significantly, reaching 2,330 gigawatt hours, with its cost increasing 21.4 percent to Rs. 17.088 per unit. Hydel power, the largest generation source, remained relatively stable, with production of 5,654 gigawatt hours.

Local coal generation increased 12.76 percent, but its cost fell 54.3 percent to Rs. 5.495 per unit. The petition also includes provisions to offset the additional recovery from consumers, with power distribution companies agreeing to refund or forgo Rs. 10.097 billion from prior adjustments and an additional Rs. 10.617 billion related to RLNG fuel rates.