Key Takeaways
- CPPA seeks approval to pass Rs. 1.7267 per unit in additional fuel costs to consumers.
- The adjustment covers August fuel charges and comes on top of a previous Rs. 2.058 per unit increase.
- Generation costs have increased significantly, with RLNG and nuclear power becoming more expensive.
Electricity consumers in Pakistan may face higher bills in October 2026, as the Central Power Purchasing Agency (CPPA) has sought approval to pass Rs. 1.7267 per unit in additional fuel costs on to consumers.
This adjustment is part of a broader effort to address the gap between the reference fuel cost used for August billing and the actual cost recorded during the month, which was Rs. 8.8265 per unit.
The proposed increase comes on top of a previous Rs. 2.058 per unit adjustment that consumers are already paying in September bills, under the July fuel charges adjustment.
The latest data indicates a significant increase in the cost of power generation, despite higher overall electricity production. Generation climbed 5.1 percent year on year to 14,943 gigawatt hours in August, but the average cost of generation jumped 37.63 percent to Rs. 10.0114 per unit from Rs. 7.2738 per unit a year earlier.
RLNG was a major contributor to the increase, with its cost rising 111 percent year on year to Rs. 45.928 per unit from Rs. 21.73 per unit. Nuclear generation also became more expensive, with its cost increasing 43.3 percent to Rs. 3.1468 per unit, even as output fell 28.76 percent to 1,528 gigawatt hours.
Imported coal generation expanded sharply, rising to 2,330 gigawatt hours from 1,138 gigawatt hours a year earlier, with its generation cost increasing 21.4 percent to Rs. 17.088 per unit from Rs. 14.07 per unit.
Hydel power remained the largest contributor to generation, producing 5,654 gigawatt hours during the month. Local coal offered a contrasting trend, with generation increasing 12.76 percent to 1,626 gigawatt hours while its cost fell 54.3 percent to Rs. 5.495 per unit.
The petition also includes adjustments that would reduce the amount ultimately recovered from consumers. Power distribution companies have agreed to forego or refund Rs. 10.097 billion from previous adjustments, while another Rs. 10.617 billion relates to adjustments arising from RLNG fuel rates.
