Key Takeaways
- The Central Power Purchasing Agency (CPPA) has requested NEPRA to approve a fuel cost adjustment of Rs. 1.20 per unit.
- If approved, the increase will affect over 35 million electricity consumers across Pakistan.
- The proposed tariff hike is set for June 2026 and could impose an additional financial burden of more than Rs. 18 billion.
Pakistan’s electricity consumers may soon face a significant increase in their bills, as the Central Power Purchasing Agency (CPPA) has petitioned the National Electric Power Regulatory Authority (NEPRA) for approval to adjust fuel costs by Rs. 1.20 per unit for June 2026.
The proposed adjustment is part of the monthly Fuel Charges Adjustment (FCA) mechanism, which aims to reflect changes in the cost of fuel used for power generation. This mechanism ensures that consumers are charged according to fluctuations in fuel prices, a common practice globally but one that can be contentious given its impact on household finances.
According to NEPRA data, Pakistan’s average fuel cost for electricity generation declined by 1 percent month on month in June to Rs. 9.0 per unit. Despite this reduction, the CPPA is seeking an increase, highlighting the complex interplay between fuel mix and cost recovery mechanisms that can lead to higher tariffs.
The proposed tariff hike will apply to all electricity consumers across Pakistan, subject to NEPRA’s approval. The regulator has scheduled a hearing on July 29 to consider the petition, after which it will issue its decision. If approved, the additional charge could impose an extra financial burden of more than Rs. 18 billion on consumers for one month.
The impact of this proposed increase is significant, affecting over 35 million electricity consumers in Pakistan. The move comes at a time when many households are already grappling with economic challenges and rising living costs. Consumer groups have expressed concern about the potential impact on low-income families who may struggle to absorb such an additional financial burden.
The decision by NEPRA will be crucial, as it balances the need for cost recovery with the economic realities faced by consumers. The regulator must carefully consider the implications of this proposed increase and ensure that any adjustments are transparent and justified.
In a statement, CPPA spokesperson Ahsan Khan stated: 'We have requested NEPRA to approve the fuel cost adjustment as per our FCA mechanism. This is necessary for ensuring fair recovery of costs incurred in power generation.'
'We have requested NEPRA to approve the fuel cost adjustment as per our FCA mechanism. This is necessary for ensuring fair recovery of costs incurred in power generation.'
Ahsan Khan, CPPA spokesperson
