Islamabad – Pakistani electricity consumers face another potential increase in their bills, as power companies are seeking to recover approximately Rs12.2 billion for February’s fuel costs. This comes on the heels of a Rs1.63 per unit fuel cost adjustment (FCA) already applied to current bills, raising concerns about affordability and the ongoing financial pressures on households and businesses. The request for an additional Rs1.64 per unit for April bills was submitted to the National Electric Power Regulatory Authority (Nepra), which has scheduled a public hearing on March 31 to review the petition.
The Central Power Purchasing Agency (CPPA), the entity responsible for procuring fuel for power generation, attributed the need for the additional FCA to increased electricity demand in February. While over 75 percent of power generated during that month came from relatively cheaper domestic sources, overall consumption was 11.42 percent higher than the same period last year. This increase in demand, coupled with fuel costs, is driving the request for further adjustments. However, February’s consumption was approximately 15 percent lower than in January, suggesting fluctuating demand patterns.
If approved by Nepra, the additional Rs1.64 per unit charge will impact all consumers, including those served by ex-Wapda Distribution Companies (Discos) and K-Electric. The CPPA claims an average fuel cost of Rs8.37 per unit for February, compared to Rs8.23 per unit in February 2025. This represents a slight increase in fuel expenses despite the reliance on domestic power sources. The agency reported delivering 7,427 billion units (gigawatt-hours) to Discos in February, down from 8,762 GWh in January.
Shifting Fuel Sources and Rising Costs
The composition of Pakistan’s power generation mix in February reveals a dynamic landscape. Hydropower, benefiting from the complete of annual canal closures in December and January, regained its position as the leading fuel source, contributing over 23 percent to the national grid. However, its output remained below its full potential. Nuclear power followed with an 18.83 percent share, a slight increase from January when some plants were undergoing maintenance. Local coal-based generation accounted for 16 percent, while imported coal contributed nearly 15 percent.
A significant shift was observed in the contribution of Regasified Liquefied Natural Gas (RLNG), which plummeted from 22 percent in January to 9.47 percent in February. RLNG was also the most expensive fuel source, costing Rs23.21 per unit. Local gas followed at Rs13.59 per unit, with imported coal at Rs13.56 and local coal at Rs12.22. Notably, there was no generation from furnace oil or diesel in February, unlike January when these sources accounted for 3 percent of the total.
Renewable Energy and Fuel Costs
Renewable energy sources – wind, bagasse, and solar – collectively contributed 5.63 percent to the grid. Wind and solar power have no associated fuel costs, while bagasse-based plants, with a 1.19 percent share, experienced a doubling of fuel costs to Rs10.39 per unit compared to February of the previous year. Electricity imported from Iran accounted for 0.45 percent of the total, also at a cost of Rs23.21 per unit.
The nuclear fuel cost itself increased to Rs2.50 per unit in February, up from Rs2.23 in January and Rs1.82 in February 2025, reflecting broader trends in fuel pricing. The CPPA reported total electricity generation in February at 7,696 GWh, with an estimated fuel expenditure of Rs62.75 billion (Rs8.15 per unit). Of this, 7,427 GWh was delivered to Discos at a cost of Rs62.2 billion (Rs8.37 per unit).
Impact and Next Steps
The proposed FCA increase adds to the existing financial strain on Pakistani consumers already grappling with high inflation and economic challenges. The public hearing scheduled for March 31 will be a crucial opportunity for stakeholders to voice their concerns and for Nepra to scrutinize the CPPA’s justification for the additional charges. The outcome of this hearing will directly impact electricity bills for millions of households and businesses across the country.
The situation highlights the complexities of Pakistan’s energy sector, including its reliance on imported fuels, fluctuating demand, and the need for greater investment in renewable energy sources. Addressing these challenges will be critical to ensuring a stable and affordable power supply for the future. Consumers can stay informed about updates and decisions regarding the FCA through Nepra’s official website and announcements in the media.
The next key date to watch is March 31, when Nepra will hold the public hearing to assess the CPPA’s request. A decision is expected shortly thereafter, which will determine whether consumers will face the additional Rs1.64 per unit charge on their April electricity bills. We will continue to follow this developing story and provide updates as they become available.
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