Consumers face Rs2.36 per unit hike in November power bills

ISLAMABAD: Electricity consumers will face an additional charge of Rs2.3673 per unit in their November bills after the National Electric Power Regulatory Authority (Nepra) approved a positive fuel charges adjustment (FCA) for electricity consumed in September 2026.

According to a notification issued on November 6, the adjustment will apply to consumers of ex-Wapda distribution companies (XWDISCOs) as well as K-Electric under the federal government’s policy of applying uniform fuel cost adjustments.

Nepra determined the actual fuel charges component for September at Rs9.8268 per kilowatt-hour, compared with the reference fuel cost of Rs7.4596 per unit already built into the tariff.

The difference resulted in a positive FCA of Rs2.3673 per unit.

The increase reflects the gap between the fuel cost assumed when the electricity tariff was set and the actual cost of generating and purchasing power during September.

The Central Power Purchasing Agency-Guarantee (CPPA-G) had initially sought a higher FCA of Rs2.5624 per unit, based on an actual fuel cost of Rs10.0220 per unit. Nepra subsequently reduced the amount to Rs2.3673 after reviewing the claimed generation costs and other adjustments.

The composition of electricity generation during the month also affected the fuel bill.

According to CPPA-G’s September energy purchase data published by Nepra, Pakistan generated around 13.22 billion units of electricity during the month, with hydropower accounting for about 36.6 per cent and nuclear power around 14.3 per cent.

However, the system also relied on substantially more expensive sources.

Imported coal generated around 16.3 per cent of electricity at a fuel cost of approximately Rs17.23 per unit, while electricity produced from regasified liquefied natural gas (RLNG) cost around Rs39.74 per unit.

Furnace oil-based generation cost about Rs44.86 per unit, while high-speed diesel was the most expensive major source at around Rs62.14 per unit. By comparison, nuclear generation cost about Rs2.90 per unit and local coal around Rs5.99.

Although furnace oil and diesel together accounted for only a small portion of total generation, their considerably higher fuel costs increased the overall generation bill. September also saw greater use of imported coal and diesel than had been assumed in the reference generation plan.

Monthly FCAs are designed to pass variations in actual power-generation fuel costs on to consumers rather than permanently incorporating them into the base electricity tariff.

Nepra said XWDISCOs and K-Electric would recover the September adjustment through November bills, calculated according to the units billed to consumers during September.

The additional charge will apply to most consumer categories but will not be imposed on lifeline consumers, electric vehicle charging stations or prepaid electricity consumers who opted for prepaid tariffs.

The FCA will also apply to electricity consumed under the Incremental Consumption Package.

Nepra directed power companies to show the adjustment separately on electricity bills.

If a November bill was issued before the notification came into effect, the regulator said the adjustment could instead be recovered in the subsequent billing month.

The authority also directed XWDISCOs and K-Electric to comply with relevant court orders while implementing the adjustment.