Electricity Consumers May See Fuel Cost Adjustment in Upcoming Bills
Electricity consumers across Pakistan may see a fuel cost adjustment in their upcoming monthly bills after the Central Power Purchasing Agency (CPPA) requested approval for additional fuel cost recoveries exceeding Rs. 16 billion.
The request was discussed during a public hearing conducted by the National Electric Power Regulatory Authority (NEPRA). The proposed adjustment relates to electricity generated and consumed during April 2026 and amounts to approximately Rs. 1.73 per unit.
According to CPPA Chief Executive Officer Rehan Akhtar, the reference fuel cost for April was estimated at Rs. 8.25 per unit, while the actual fuel cost reached Rs. 9.97 per unit, resulting in a difference that is now being sought for recovery through the fuel cost adjustment mechanism.
Officials informed the hearing that fluctuations in global energy markets and challenges in fuel supply contributed to the higher generation costs during the month. They also noted that transmission constraints affected the efficient distribution of lower-cost electricity from some regions to major demand centers.
The power sector reportedly limited the use of more expensive generation sources where possible to help manage overall costs and reduce the impact on consumers.
In addition, reduced availability of Karachi Nuclear Power Plant Unit-2 (K-2), including maintenance-related outages and previously approved claims, was cited as one of the factors influencing the overall fuel cost calculation for April.
NEPRA will review the request before issuing a final decision. If approved, the adjustment would be reflected in future electricity bills in accordance with the regulator’s guidelines.
The fuel cost adjustment mechanism is routinely used to account for differences between projected and actual fuel expenses incurred during electricity generation.
