Power consumers need relief, not another shock

August 29, 2026

Electricity consumers regardless of their domicile in Pakistan may be facing another painful increase in their September bills. The National Electric Power Regulatory Authority (NEPRA) is considering a request to recover an additional Rs36.54 billion from consumers through a monthly fuel price adjustment. The proposed increase of Rs2.52 per unit may appear manageable on paper, but its real impact could be much greater. Other adjustments are also expected to affect bills, while an earlier relief is coming to an end. According to business representatives, the combined impact could reach around Rs6 per unit for some consumers.

This is a worrying prospect for people who are already struggling with the high cost of living. Electricity bills have become one of the biggest financial burdens for ordinary households. Salaried people, pensioners, small shopkeepers and industries are all finding it increasingly difficult to manage rising energy costs. Another major increase could further deepen their hardship. There is no doubt that power companies need to recover legitimate costs. However, regulators and the government must show restraint when passing these costs directly to consumers. The question should not simply be how much money can be recovered through electricity bills. It should also be asked whether every possible effort has been made to reduce the cost of generating electricity.

The figures presented in the case raise important questions. Electricity generation costs increased sharply in July, while overall generation rose only modestly. Expensive imported fuels, particularly RLNG and imported coal, continued to play a major role in pushing up costs. At the same time, locally available coal was considerably cheaper than imported coal. Pakistan cannot continue to place the burden of inefficient energy decisions on consumers. Greater use of cheaper domestic resources, where environmentally and technically appropriate, should be seriously considered. The government must also improve planning, reduce transmission and distribution losses and address the long-standing problems of the power sector.

The business community’s concerns should not be ignored either. High electricity prices make Pakistani products more expensive and reduce the competitiveness of local industries. Ultimately, this can hurt jobs, investment and economic growth.

NEPRA must carefully examine the CPPA-G request before making its final decision. Consumers should not be treated as the automatic source for recovering every increase in the cost of the power sector.