ISLAMABAD: Pakistan’s power regulator has warned that electricity prices are moving in the wrong direction as utilities sought a Rs1.78 per unit increase driven by expensive fuel use, during a public hearing held on Thursday by the National Electric Power Regulatory Authority (Nepra).
“We hoped for better results, but things are going the opposite way,” said Nepra Member Punjab Amina Ahmed, voicing concern over the rising generation costs despite expectations of improvement. She noted that monthly and quarterly adjustments had so far remained positive, but the latest fuel data painted a troubling picture.
The increase request was filed by the Central Power Purchasing Agency (CPPA-G), which asked the regulator to allow an additional Rs1.78 per unit collection from power consumers under the January 2026 fuel cost adjustment (FCA). If approved, the hike will be recovered in March bills, including from consumers of K-Electric.
According to CPPA-G, consumers were charged a reference fuel cost of Rs10.395 per unit in January, but the actual cost surged to Rs12.1768 per unit.
The gap is largely attributed to higher reliance on costly fuels such as RLNG and furnace oil, after hydropower generation fell sharply and peak demand increased.
Officials told the hearing that lower hydropower generation and higher demand forced the system to rely more on expensive fuels, including furnace oil.
Nepra Member Maqsood Anwar said the main reason for the requested increase was the use of furnace oil plants. In response to questions why such costly plants were operated, CPPA-G officials said peak demand had risen and additional generation was needed to meet supply requirements.
Data submitted to Nepra showed total generation of 9,140 gigawatt-hours (GWh) in January at a cost of Rs106.36 billion. After adjustments and transmission losses, net electricity supplied to distribution companies stood at 8,762 GWh at a total cost of Rs106.69 billion, translating into Rs12.1768 per unit. RLNG-based plants generated 2,002 GWh at Rs19.93 per unit, while imported coal and local coal added significant volumes at higher costs. Hydropower output dropped 18 percent year-on-year, limiting access to cheaper electricity.
Nepra will decide after reviewing the case whether consumers will bear the additional burden. It will issue its decision in the next few days.
