Electricity tariff may rise by Rs1.20 per unit across Pakistan

Electricity consumers across the country, including K-Electric users in Karachi, may soon face another increase in power bills. The proposed hike comes at a time when many households are already struggling with rising inflation and the increasing cost of living.

The National Electric Power Regulatory Authority (Nepra) is holding a hearing on an application submitted by the Central Power Purchasing Agency (CPPA), which has requested a Rs1.20 per unit increase under the monthly Fuel Cost Adjustment (FCA).

The proposed adjustment is based on the cost of electricity generated in June. After reviewing the application and hearing the arguments, Nepra will decide whether to approve the increase.

If approved, the additional charge will be reflected in consumers’ electricity bills for August, adding further financial pressure on households and businesses across Pakistan. According to the CPPA’s application, hydropower remained the largest source of electricity generation in June, accounting for 39 per cent of the total electricity produced.

Locally mined coal contributed 10.11 per cent of electricity generation, while imported coal accounted for 12.65 per cent during the month. The application also stated that imported gas generated 11.02 per cent of the country’s electricity, while nuclear power contributed 13.40 per cent to the national power supply.

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The proposed increase follows another tariff adjustment approved earlier this month. Nepra had increased electricity prices by Rs0.34 per unit under the monthly Fuel Cost Adjustment for May. The earlier increase applied to all electricity distribution companies (DISCOs), including K-Electric, and the additional charges were reflected in consumers’ July electricity bills.

Fuel Cost Adjustments are reviewed every month to reflect changes in electricity generation costs. These adjustments depend on the fuel mix used for power generation and fluctuations in global fuel prices.

Consumers across Pakistan are now awaiting Nepra’s final decision, as another increase could further raise electricity costs at a time when many families are already facing financial challenges.