Power consumers may face Rs1.73/unit tariff hike

Islamabad: Electricity utility companies across Pakistan may be required to raise their per-unit tariffs by Rs1.73, following a request to adjust power costs under the monthly fuel adjustment mechanism for August, according to the Central Power Purchasing Agency (CPPA). The CPPA submitted the request to the National Electric Power Regulatory Authority (Nepra), which will review the proposal on September 29. The tariff hike will also affect K-Electric (KE) customers.

In August, the CPPA reported that 14.464 billion units of electricity were distributed to distribution companies (Discos) at an average cost of Rs8.82 per unit. According to the agency, hydropower generated 37.84% of the total electricity, while 10.88% came from local coal, 15.59% from imported coal, 2.15% from furnace oil, 7.04% from local gas, and 8.48% from imported LNG.

The CPPA explained that the generation costs for furnace oil and imported LNG stood at Rs45.25 and Rs45.92 per unit, respectively. Last month, Nepra authorized a financial burden of approximately Rs9.8 billion for electricity consumers by permitting a fuel cost adjustment of 75.03 paise per unit in August electricity bills. The regulator stated that the positive financial charge for June 2026, amounting to Rs0.7503 per kilowatt-hour, would apply to all consumer categories of KE and ex-Wapda distribution companies, excluding lifeline consumers, electric vehicle charging stations, and prepaid electricity customers of all categories who opted for the pre-paid tariff.

Nepra also directed distribution companies and KE to incorporate the June fuel cost adjustment in the electricity bills issued for August.