Electricity price may rise by 82 paisa per unit

Electricity consumers across Pakistan, including Karachi, may soon face higher power bills as the Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of 82 paisa per unit under the monthly Fuel Cost Adjustment (FCA) for May 2026.

Islamabad: Electricity consumers across Pakistan, including Karachi, may soon face higher power bills as the Central Power Purchasing Agency (CPPA) has submitted a request to the National Electric Power Regulatory Authority (NEPRA) seeking an increase of 82 paisa per unit under the monthly Fuel Cost Adjustment (FCA) for May 2026.

According to the application, if the proposed increase is approved by NEPRA, electricity consumers could bear an additional financial burden of approximately Rs12 billion. The regulatory authority is scheduled to hold a public hearing on the request before issuing its final decision.

The CPPA stated that a total of 12.638 billion units of electricity were generated during May 2026. The average fuel cost of electricity generation remained Rs9.25 per unit, compared with the reference fuel cost of Rs8.43 per unit. The difference between the actual and reference fuel costs has resulted in the request for an upward adjustment in electricity tariffs.

The generation mix submitted with the application shows that 33.27 percent of electricity was produced from hydropower, making it the largest source during the month. Electricity generated from imported coal accounted for 13.54 percent, while 11.66 percent came from local coal. Power generation from local gas contributed 8.31 percent, whereas only 0.16 percent was generated using furnace oil.

NEPRA will examine the fuel cost data, generation figures, and supporting documents before deciding whether the requested increase is justified. If approved, the additional amount will be reflected in consumers’ electricity bills under the monthly Fuel Cost Adjustment mechanism.

Fuel Cost Adjustment is a routine monthly process that allows electricity tariffs to be revised based on fluctuations in fuel prices and the actual cost of power generation. The adjustment is separate from the base electricity tariff and is applicable only after regulatory approval.

Consumers across the country are closely watching the outcome of the hearing, as rising electricity costs continue to put pressure on household budgets and business expenses. NEPRA’s final decision is expected after reviewing all relevant data and hearing stakeholders’ views during the scheduled proceedings.