Electricity consumers across Pakistan could see an increase of approximately Rs. 1.74 per unit in their next monthly bills as the Central Power Purchasing Agency (CPPA) has requested approval for over Rs. 16 billion in additional fuel cost recoveries.
The National Electric Power Regulatory Authority (NEPRA) recently conducted a public hearing on CPPA’s petition for a fuel cost adjustment of Rs. 1.73 per unit for electricity consumed during April 2026. If approved, the adjustment would place an additional financial burden exceeding Rs. 16 billion on consumers nationwide.
During the hearing, CPPA Chief Executive Officer Rehan Akhtar explained that the reference fuel cost for April was set at Rs. 8.25 per unit. However, the actual fuel cost rose to Rs. 9.975 per unit, resulting in the proposed adjustment.
According to officials, the increase was largely driven by disruptions in LNG supplies linked to the ongoing US-Iran conflict. These disruptions forced power producers to rely on more expensive energy sources, significantly increasing generation costs.
Authorities also highlighted transmission constraints that limited the transfer of lower-cost electricity from Sindh to major demand centers across the country. These technical challenges further contributed to higher fuel expenses.
To minimize the impact on consumers, the government restricted electricity generation through furnace oil and diesel-based power plants. Officials stated that these measures helped contain the proposed adjustment to Rs. 1.73 per unit.
In addition, reduced availability of the Karachi Nuclear Power Plant Unit-2 (K-2), including operational outages and prior claims totaling Rs. 3.4 billion, added to the overall cost increase.
Officials further informed the regulator that special LNG import arrangements were made during the period to help offset rising international energy prices and reduce the financial impact on electricity consumers.
