Electricity bills to rise by up to Rs2.58 per unit

ISLAMABAD: Electricity consumers across Pakistan are set to face higher bills after the National Electric Power Regulatory Authority (Nepra) approved additional charges amounting to around Rs46 billion.

The regulator has allowed a Rs2.06 per unit increase under the Fuel Cost Adjustment (FCA) for electricity consumed in July 2026. The adjustment will be reflected in consumers’ September bills.

In addition, Nepra has approved a quarterly adjustment of around 52 paisa per unit, which will be recovered over three months — September, October and November.

As a result, consumers will face an additional burden of roughly Rs2.58 per unit in September, while the quarterly adjustment of around 52 paisa per unit will continue for the following two months.

The July fuel adjustment alone is expected to place a burden of about Rs33 billion on consumers. A major factor behind the increase was the higher cost of electricity generation, including expensive LNG purchases from the international spot market.

Another Rs12.67 billion will be recovered through the quarterly tariff adjustment approved by Nepra.

The regulator said the Rs2.0581 per kWh positive FCA would apply to consumers of K-Electric and distribution companies across most categories. However, certain consumers have been excluded from the increase.

Lifeline consumers, electric vehicle charging stations and prepaid consumers who have opted for prepaid tariffs will not be charged the higher FCA.

The exemption will also apply to certain incremental consumption package units under the applicable tariff rules.

Distribution companies and K-Electric have been directed to incorporate the July fuel adjustment into bills issued in September 2026.

Separately, Nepra approved a positive quarterly adjustment of Rs0.5194 per kWh. The charge will be recovered uniformly from eligible consumers over three months.

The quarterly adjustment covers changes in several components of the power sector’s costs, including capacity charges, variable operation and maintenance expenses, use-of-system charges and market operator fees.

It also includes the impact of fuel cost adjustments on transmission and distribution losses, along with other adjustments related to incremental electricity consumption.

Nepra reviews fuel costs every month under the existing tariff mechanism. Changes in generation costs are generally passed on to consumers through monthly fuel adjustments.

Quarterly adjustments, meanwhile, account for changes in power purchase costs, capacity payments and other operational expenses. These adjustments are incorporated into electricity tariffs and subsequently recovered from consumers.

The latest decision means electricity users will see another increase in their bills at a time when household and business consumers are already facing substantial energy costs.