Power Companies Seek Rs1.20/Unit Hike for August Bills

Power companies have sought a Rs1.20 per unit increase in fuel cost charges for consumers across the country, to be reflected in August bills. This request is primarily attributed to the use of expensive imported fuels.

If approved, consumers of all power utilities, including ex-Wapda Distribution Companies (Discos) and K-Electric, would be charged an additional Rs15.7 billion. The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on July 29 to examine this request for a fuel cost adjustment (FCA).

The Central Power Purchasing Agency (CPPA), which filed the petition, noted that electricity consumption in June 2026 was slightly lower than in June 2025. The increase in fuel costs was primarily driven by the nearly doubled price of Regasified Liquefied Natural Gas (RLNG), which reached Rs35 per unit compared to Rs16 per unit in June last year. The CPPA stated that the reference fuel cost for June 2026 was set at Rs7.714 per unit, but the actual fuel cost stood at Rs8.90 per unit, necessitating the additional charge.

Other contributing factors to higher fuel costs included the utilisation of furnace oil-based plants at Rs52 per unit and diesel at about Rs57 per unit, though these combined for less than 1% of the overall grid supply. In June, 39% of the power supply came from hydropower, 10% from local coal, 6.5% from local gas, and 13.5% from nuclear power. Wind projects contributed 5%, solar 0.82%, and bagasse-based generation 0.35%.

Electricity consumers in Pakistan may face a potential increase of 1 rupee 20 paisa per unit. The Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) for a monthly fuel price adjustment for June.

NEPRA has scheduled a hearing on this request for July 29. This potential hike comes amidst ongoing concerns about energy costs and their impact on consumers.