ISLAMABAD: Pakistan’s electricity consumers may soon face another increase in power bills as the National Electric Power Regulatory Authority (NEPRA) reviews a proposal to raise the electricity tariff by Rs1.20 per unit under the monthly Fuel Cost Adjustment (FCA). If approved, the increase will be reflected in electricity bills issued for August, adding further financial pressure on households and businesses already dealing with inflation and higher living expenses.
The proposed increase has been requested by the Central Power Purchasing Agency (CPPA), which submitted an application to NEPRA based on the fuel cost incurred in electricity generation during June 2026. The regulatory authority held a public hearing on Wednesday to examine the request and hear the views of stakeholders before making its final decision.
According to the CPPA’s submission, hydropower remained the largest source of electricity generation during June, contributing 39 percent of the total power mix. Electricity produced from locally mined coal accounted for 10.11 percent, while imported coal generated 12.65 percent. Imported natural gas contributed 11.02 percent of the total electricity supply, whereas nuclear energy accounted for 13.40 percent.
Fuel Cost Adjustment is a routine mechanism that allows electricity prices to fluctuate depending on changes in fuel costs used for power generation. Consumers are charged more when generation costs increase and may receive relief when fuel expenses decline. The adjustment is applicable to electricity distribution companies across Pakistan, including K-Electric, subject to NEPRA’s approval.
The proposed tariff increase comes only weeks after NEPRA approved a Rs0.34 per unit increase under the FCA for May 2026. That adjustment was implemented nationwide and appeared in consumers’ July electricity bills, affecting customers of all major power distribution companies.
If NEPRA approves the latest request, electricity users across Pakistan will see an additional Rs1.20 per unit charge in their August bills. The regulator is expected to announce its final decision after reviewing the CPPA’s application and feedback received during the hearing.
With electricity costs continuing to fluctuate due to fuel price adjustments, consumers are closely watching NEPRA’s decision, as another increase could further raise household expenses and operating costs for businesses across the country.
