Electricity tariff may rise by Rs2.52 per unit across Pakistan

Pakistan’s electricity consumers could soon face another increase in their monthly bills. The Central Power Purchasing Agency-Guaranteed (CPPA-G) has requested a Rs2.52 per unit increase under the July fuel cost adjustment mechanism.

The National Electric Power Regulatory Authority (NEPRA) is scheduled to hear the request on Thursday. The proposed adjustment is based on electricity generation costs recorded during July 2026.

If approved, the increase would affect consumers of ex-Wapda distribution companies and K-Electric. Reports estimate that the proposed adjustment could place an additional burden of around Rs41 billion, including taxes, on consumers.

Why electricity costs increased

The proposed increase comes after a sharp rise in the cost of generating electricity during July. CPPA-G data showed that the average actual fuel charge reached Rs9.6112 per unit, compared with a reference fuel charge of Rs7.0929 per unit.

This difference is the main reason behind the requested Rs2.52 per unit adjustment. The figures show that expensive fuel sources played an important role in pushing up the overall generation cost.

Electricity generation during July reached 15,122 GWh, up from 14,123 GWh during the same month last year. Electricity supplied to consumers also increased to 14,501 GWh from 13,666 GWh.

However, the increase in generation came with significantly higher fuel costs. Overall electricity generation costs rose sharply compared with the previous year, putting additional pressure on the monthly adjustment mechanism.

LNG and diesel add pressure

Imported liquefied natural gas was among the more expensive sources used for power generation. RLNG-based generation cost about Rs47.37 per unit, while its share of total generation stood at around 10.78 percent.

Diesel-based generation was even more expensive. Around 31 million units were produced using diesel in July, with the cost reaching approximately Rs54.47 per unit.

Imported coal also carried a high generation cost, while furnace oil added further pressure to the overall fuel bill. These expensive sources contributed to the gap between the reference fuel cost and the actual cost recorded during July.

At the same time, hydropower remained the largest contributor to electricity generation. Hydel power accounted for around 39.81 percent of total generation, while local coal contributed about 10.91 percent.

Nuclear power provided around 10.10 percent of total generation. Its fuel cost was much lower, at approximately Rs3.02 per unit, compared with several imported fuel sources.

Also Read:Pakistan considers single gas price as subsidy system faces major overhaul

NEPRA will decide the final adjustment

The proposed Rs2.52 per unit increase is not yet a final tariff decision. NEPRA will examine the CPPA-G request, review the submitted generation data and hear the relevant stakeholders before deciding whether the adjustment should be approved.

The regulator’s official website lists a hearing for the July 2026 Fuel Charges Adjustment for ex-Wapda distribution companies.

The monthly fuel adjustment mechanism is used to account for changes between the reference fuel cost and the actual cost of generating electricity. Such adjustments can increase or decrease electricity bills depending on changes in fuel prices and generation costs.

Consumers would therefore see the proposed amount in their bills only if NEPRA approves the requested adjustment. The final decision could also differ from the amount sought by CPPA-G.

Earlier electricity tariff increases

The latest request follows several earlier fuel adjustments. NEPRA had approved a Rs0.75 per unit increase under the June 2026 monthly fuel adjustment, according to the information provided in the original report.

Before that, a Rs0.34 per unit increase had been approved under the May adjustment. These repeated changes have continued to keep electricity bills under pressure for households and businesses.

The proposed July adjustment is considerably larger than those earlier increases. If approved in full, consumers could face another noticeable rise in their monthly electricity expenses.

The impact would vary according to electricity consumption and the applicable tariff category. Higher electricity users would generally face a larger increase in their bills.