Power consumers may face Rs1.73/unit tariff hike on account of fuel cost adjustment for August

Islamabad: Power distributors across Pakistan may see a Rs1.73 per unit surge in electricity tariffs after requesting an adjustment for August's fuel expenses. The Central Power Purchasing Agency (CPPA) submitted the proposal to Nepra, which will review the request on September 29. The proposed rise will also affect K-Electric customers.

In August, CPPA reported supplying 14.464 billion units of electricity to distribution companies (Discos) at an average cost of Rs8.82 per unit. Hydropower contributed 37.84 percent of the total generation, while local coal and imported coal made up 10.88 percent and 15.59 percent respectively. Furnace oil accounted for 2.15 percent, local gas for 7.04 percent, and imported LNG for 8.48 percent.

CPPA highlighted that the cost of electricity produced from furnace oil was Rs45.25 per unit, while that from imported LNG reached Rs45.92 per unit. In June, Nepra granted an estimated financial burden of around Rs9.8bn on electricity users by permitting a fuel cost adjustment of 75.03 paise per unit in August's bills. The regulator decided that the positive FCA for June 2026, equivalent to Rs0.7503 per kilowatt-hour, would apply to all KE consumer categories and ex-Wapda distribution companies, excluding lifeline customers, electric vehicle charging stations, and pre-paid users of all types who selected the pre-paid tariff.

Distribution companies and KE were ordered to incorporate the June fuel cost adjustment in August's electricity bills.