NEPRA approves Rs2.3673 per unit fuel charge for November electricity bills

• The adjustment is based on electricity units billed for September 2026 and applies to ex-WAPDA distribution companies and K-Electric.
• NEPRA reduced the charge from the Rs2.5624 per unit requested by the Central Power Purchasing Agency.
• Lifeline consumers, electric vehicle charging stations and customers on prepaid tariffs are exempt. Additional units billed under the Incremental Consumption Package are covered.

The National Electric Power Regulatory Authority (NEPRA) has approved a fuel charges adjustment of Rs2.3673 per unit for September 2026. Consumers of ex-WAPDA distribution companies and K-Electric will see the charge in their November electricity bills under the federal government’s uniform tariff policy.

The adjustment will appear as a separate item calculated on the units billed for September. Where a November bill was issued before the decision was notified, the charge may be recovered in the following billing month. NEPRA said the adjustment also applies to additional electricity used under the Incremental Consumption Package.

The Central Power Purchasing Agency-Guaranteed (CPPA-G) filed its petition on October 15, reporting fuel charges of Rs10.0220 per unit against a reference cost of Rs7.4596. It sought to recover the difference of Rs2.5624 per unit. NEPRA approved a lower charge after reviewing plant-level fuel costs, transmission losses and other components of the monthly calculation.

At an October 29 public hearing, CPPA-G told the regulator that September electricity generation was 0.98 per cent above the level assumed in the reference tariff. Representatives of the National Grid Company (NGC), the Independent System and Market Operator, the Power Planning and Monitoring Company, the Power Division, consumers and other stakeholders attended the hearing.

Imported coal accounted for a larger share of generation than projected. Plants running on imported coal produced 2.16 billion units against a reference estimate of 1.14 billion units, while their fuel cost rose from a projected Rs11.78 to Rs17.23 per unit. Local coal generation fell from a projected 1.48 billion units to 1.33 billion units, at a fuel cost of Rs5.99 per unit.

Hydropower generation came in at 4.83 billion units against a reference estimate of 5.05 billion, while nuclear generation fell short of the projected 2.11 billion units at 1.89 billion. Plants using regasified liquefied natural gas (RLNG) generated 0.80 billion units against an estimate of 1.48 billion, at a fuel cost of Rs39.74 per unit.

Generation from gas-fired plants reached 1.07 billion units against a reference estimate of 0.76 billion. Their fuel cost rose from a projected Rs10.42 to Rs13.04 per unit. High-speed diesel was the most expensive of the fuels cited in the decision at Rs62.14 per unit, followed by furnace oil at Rs44.86 per unit.

Stakeholders questioned the greater use of imported coal, the cost of generating electricity from diesel and RLNG, and the impact of transmission losses on bills. CPPA-G said the system operator dispatched plants according to the Economic Merit Order, subject to operating constraints and grid requirements. It added that decisions on petroleum levies, including those on diesel and furnace oil, fell under the federal government and the Petroleum Division.

NEPRA cut the fuel costs claimed for certain plants after checking them against approved rates. It also reviewed Rs5.759 billion in prior-period adjustments, including revisions to earlier months’ figures and adjustments related to lower supplies of domestic gas to RLNG-fired plants.

Separately, CPPA-G sought a downward adjustment of Rs10.617 billion for domestic gas supplied by Sui Northern Gas Pipelines Limited to RLNG-fired plants under an arrangement approved by the Economic Coordination Committee. The arrangement set a rate of Rs2,000 per million British thermal units for domestic gas supplied in place of imported RLNG from April 1 to October 31, 2026. NEPRA provisionally allowed the reduction because it lowered the amount payable by consumers and directed CPPA-G to submit the missing plant-by-plant details and calculations with its next monthly petition.

The National Grid Company reported transmission and transformation losses of 427.921 gigawatt-hours (GWh), including 51.894 GWh on the PMLTC high-voltage direct-current line. NEPRA capped allowable losses at 2.50 per cent on the 500 kV and 220 kV network and allowed up to 4.3 per cent on the PMLTC line. It said the deductions could be recovered through a later positive adjustment if the grid company’s cumulative losses stay within permitted limits by the end of the financial year.

CPPA-G reported that net metering and net billing customers supplied 170.389 GWh in September, including electricity fed into the grid by facilities that exceeded their approved capacity. Small and captive power producers supplied a further 12.795 GWh under bilateral agreements with distribution companies.

NEPRA directed distribution companies to reconcile those bilateral purchases and provide monthly figures for the electricity procured and its cost for future fuel adjustment petitions. The companies must also certify that the purchases complied with the Economic Merit Order and NEPRA-approved rates.

The regulator calculated the uniform rate after accounting for electricity procured through CPPA-G, bilateral contracts and net metering in each distribution company’s supply mix. It directed CPPA-G to settle the differences between the adjustments calculated for individual distribution companies and the uniform charge collected from consumers. CPPA-G will remain responsible for any errors, omissions or discrepancies identified later, with corrections reflected in future monthly adjustments.