Electricity consumers across Pakistan are likely to face higher power bills next month after the Central Power Purchasing Agency sought approval for a significant fuel cost adjustment linked to April 2026 consumption.
The National Electric Power Regulatory Authority held a public hearing on a request filed by the Central Power Purchasing Agency, which has asked to recover more than Rs. 16 billion from consumers through an increase of around Rs. 1.73 to Rs. 1.74 per unit.
If approved, the adjustment will apply to electricity used in April 2026 and reflected in upcoming consumer bills nationwide.
Fuel Costs Exceed Reference Rate
During the hearing, CPPA Chief Executive Officer Rehan Akhtar told Nepra that the reference fuel cost for April had been fixed at Rs. 8.25 per unit. However, actual generation costs rose sharply to Rs. 9.975 per unit.
He said the gap between the reference and actual cost led to the proposed adjustment, resulting in an additional burden of over Rs. 16 billion on electricity consumers.
LNG Supply Disruptions Cited
Officials attributed the higher costs mainly to disruptions in liquefied natural gas supplies, which forced the power sector to rely on relatively expensive generation sources.
According to CPPA officials, global supply uncertainties linked to the US-Iran conflict affected LNG availability during the month, pushing up generation costs across the system.
Transmission Constraints Added Pressure
The hearing was also informed that technical constraints in the transmission network prevented the smooth transfer of cheaper electricity from Sindh to demand centers in other parts of the country.
As a result, power plants running on costlier fuels had to be dispatched to meet demand, further raising the overall fuel cost.
Officials said the government deliberately restricted the use of furnace oil and diesel-based power generation to minimise the impact on consumers. This, they added, helped keep the proposed adjustment limited to Rs. 1.73 per unit despite significant cost pressures.
Nuclear Plant Outages Also Affected Costs
Another contributing factor highlighted during the hearing was the reduced availability of Karachi Nuclear Power Plant Unit-2, commonly known as K-2.
Officials said outages and prior claims related to the unit, amounting to around Rs. 3.4 billion, added to the overall fuel cost adjustment for April.
To mitigate the impact of rising international energy prices, special LNG import arrangements were made during the period, according to the power purchaser.
What Happens Next
Nepra will now review the data presented during the public hearing before issuing a final determination. If approved, the increase will be passed on to consumers in upcoming electricity bills as a fuel cost adjustment.
Fuel cost adjustments are charged separately from base tariffs and can vary month to month depending on global fuel prices, generation mix, and system constraints.
For millions of households already struggling with high energy costs, the decision will determine whether electricity bills rise further in the coming weeks.
