Electricity consumers could face another increase in their October 2026 bills after the Central Power Purchasing Agency (CPPA) sought approval to pass Rs. 1.7267 per unit in additional fuel costs on to consumers.
The request, submitted to the National Electric Power Regulatory Authority (NEPRA), covers the fuel charges adjustment for electricity generated in August. NEPRA will hear the petition on September 29. The proposed adjustment would apply to consumers served by ex-WAPDA distribution companies and, if approved, to K Electric customers as well.
The additional charge reflects the gap between the Rs. 7.0998 per unit reference fuel cost used for August billing and the actual cost of Rs. 8.8265 per unit recorded during the month. The proposed increase comes on top of the Rs. 2.058 per unit adjustment consumers are already paying in September bills under the July fuel charges adjustment.
The latest data points to 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. The cost of RLNG-based electricity rose 111 percent year on year to Rs. 45.928 per unit from Rs. 21.73 per unit. Nuclear generation became more expensive as well, 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 also expanded sharply, rising to 2,330 gigawatt hours from 1,138 gigawatt hours a year earlier. Its generation cost increased 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. At the same time, the power system continued to rely on expensive thermal sources, generating 80 gigawatt hours from high-speed diesel at Rs. 54 per unit and 321 gigawatt hours from furnace oil at Rs. 45.25 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.
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