Pakistan may witness a surge in electricity prices as the Central Power Purchasing Agency (CPPA) has submitted a request to NEPRA for a 1.78 PKR per unit increase in January’s fuel adjustment cost. NEPRA is set to hold a hearing on February 26, 2026, to decide on the proposal.

According to the CPPA, total electricity production in January reached 9.14 billion units, while 8.76 billion units were supplied to distribution companies. The average per-unit cost of electricity during January was 12.17 PKR, compared to a reference cost of 10.39 PKR per unit. The proposed 1.78 PKR hike is intended to cover the gap and rising fuel expenses.

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Electricity production in January came from multiple sources: hydro contributed 7.80%, local coal 15.36%, imported coal 17.28%, furnace oil 3%, local gas 12.23%, LNG 21.90%, and nuclear fuel 17.49%. The CPPA emphasized that the adjustment is limited to January and aims to ensure uninterrupted power supply while maintaining financial balance in the energy sector.

If NEPRA approves the proposal, both residential and commercial electricity consumers will experience higher bills for the next cycle, adding to ongoing inflationary pressures. The final decision from NEPRA will clarify the additional burden on households and businesses.