Electricity Prices May Increase by 82 Paisa Per Unit as CPPA Seeks Fuel Cost Adjustment
Electricity consumers across Pakistan could face another increase in power tariffs after the Central Power Purchasing Agency (CPPA-G) requested a hike of 82 paisa per unit under the monthly Fuel Charges Adjustment (FCA) for May 2026.
The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which is scheduled to hear the matter on June 30. If approved, the proposed adjustment would place an additional financial burden of approximately Rs12 billion on electricity consumers nationwide.
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According to the petition, the average fuel cost of electricity generated during May stood at Rs9.25 per unit, compared to the reference fuel cost of Rs8.43 per unit. Based on this difference, CPPA-G has proposed an increase of Rs0.8173 per kilowatt-hour (kWh) to recover the additional cost from consumers.
Official figures show that Pakistan generated 12.638 billion units (12,638 GWh) of electricity during May at an average fuel cost of Rs9.0857 per unit. After accounting for transmission losses and other adjustments, 12,335 GWh of electricity was supplied to distribution companies at a cost of Rs9.2488 per unit.
Under the federal government’s uniform fuel cost adjustment policy, any increase approved by NEPRA will also be applicable to K-Electric consumers.
Data submitted to the regulator shows that hydropower remained the largest source of electricity generation in May, contributing more than one-third of total power production. Nuclear energy accounted for 14.25% of the generation mix, while imported coal contributed 13.54%.
Other major sources included RLNG (regasified liquefied natural gas), which generated 11.81% of electricity, and locally produced coal, which accounted for 11.66% of total power generation during the month.
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