October 2026 Electricity Bills May Rise as CPPA Seeks Rs. 1.73 Per Unit Fuel Adjustment
Electricity consumers in Pakistan may see higher bills in October 2026 after the Central Power Purchasing Agency (CPPA) requested approval for an additional fuel cost adjustment of Rs. 1.7267 per unit.
The request has been submitted to the National Electric Power Regulatory Authority (NEPRA) and relates to electricity generated during August. NEPRA is scheduled to conduct a hearing on the petition on September 29.
If approved, the proposed adjustment will apply to consumers of former WAPDA distribution companies and may also affect K-Electric customers.
Why Electricity Bills Could Increase
The proposed adjustment is based on the difference between the reference fuel cost and the actual generation cost recorded in August.
The reference fuel cost was set at Rs. 7.0998 per unit, while the actual cost reached Rs. 8.8265 per unit. This creates a difference of Rs. 1.7267 per unit.
The proposed increase would come in addition to the Rs. 2.058 per-unit fuel adjustment already being recovered through September electricity bills under the July adjustment.
Power Generation Costs Rise
Data submitted with the petition shows that electricity generation increased during August, but the average cost of producing power also climbed significantly.
Power generation rose 5.1% year-on-year to 14,943 gigawatt-hours (GWh). However, the average generation cost increased by 37.63%, reaching Rs. 10.0114 per unit compared with Rs. 7.2738 per unit in August last year.
RLNG Costs Increase Sharply
RLNG-based electricity was among the major contributors to the higher generation cost.
The cost of RLNG-generated power increased by 111% year-on-year to Rs. 45.928 per unit, compared with Rs. 21.73 per unit previously.
Nuclear power also became more expensive. Its generation cost rose 43.3% to Rs. 3.1468 per unit, while output declined 28.76% to 1,528 GWh.
Imported and Local Coal
Electricity generation from imported coal more than doubled, reaching 2,330 GWh compared with 1,138 GWh a year earlier.
The cost of imported coal-based electricity also increased by 21.4%, rising to Rs. 17.088 per unit from Rs. 14.07 per unit.
Hydropower remained the largest source of electricity generation during August, producing 5,654 GWh.
Local coal showed a different trend. Its generation increased 12.76% to 1,626 GWh, while its cost dropped by 54.3% to Rs. 5.495 per unit.
Expensive Thermal Sources Remain Part of the Mix
The power system also continued to use higher-cost thermal generation sources.
Around 80 GWh of electricity was generated through high-speed diesel at a cost of Rs. 54 per unit, while furnace oil contributed 321 GWh at Rs. 45.25 per unit.
Some Previous Adjustments May Be Refunded
The CPPA petition also contains adjustments that could reduce the final amount recovered from consumers.
Power distribution companies have agreed to forego or refund Rs. 10.097 billion related to previous adjustments. A further Rs. 10.617 billion concerns adjustments linked to RLNG fuel rates.
NEPRA will review the CPPA request during its scheduled September 29 hearing before deciding on the proposed Rs. 1.7267 per-unit adjustment.
