48-paisa FCA hike looms, power bills set to bite consumers again

ISLAMABAD:Electricity consumers across Pakistan may face another tariff shock as regulators weigh a proposed 48-paisa per unit increase under December’s fuel cost adjustment, despite sharp growth in demand, expanding solar generation, and strong resistance from industry.

The National Electric Power Regulatory Authority (NEPRA) held a public hearing on a request filed by the Central Power Purchasing Agency (CPPA), which argued that higher electricity consumption and increased reliance on costly fuels during winter have pushed generation costs upward.

CPPA told the regulator that national electricity consumption rose by 22 percent compared to the same month last year, largely driven by industrial and agricultural demand. According to official data, industrial power consumption increased from 2 billion units in December 2024 to 2.4 billion units in December 2025, reflecting improved activity following recent power relief packages.

Officials informed NEPRA that about 44 percent of industrial consumers and 39 percent of agricultural consumers benefited from these packages, while overall electricity generation on an annual basis grew by 2.4 percent. Peak demand also showed a notable jump, with maximum load rising from 13,792 megawatts in December 2024 to 14,886 megawatts in December 2025, as reported by the National Power Control Centre (NPCC).

However, NPCC officials acknowledged that the rapid expansion of solar energy is increasingly offsetting grid demand, particularly during daytime hours. They revealed that around 9,000 to 10,000 megawatts of electricity is now being generated daily through net metering, significantly reducing reliance on the national grid and altering demand patterns.

The proposed FCA triggered strong objections from industrial consumers, who warned that any further increase in electricity prices would severely undermine competitiveness. Representatives told NEPRA that power tariffs are already unaffordable and that the adjustment amounts to a concealed price hike. “Instead of reducing electricity rates, a hidden increase is being imposed. Industry cannot survive under the current tariff structure,” one participant said.

Power sector officials countered that while the monthly FCA may rise, the upcoming quarterly adjustment is expected to decline, potentially offering relief in the coming months. They explained that hydropower generation typically falls during winter, forcing greater dependence on expensive thermal fuels, whereas higher hydel output in summer helps bring down fuel costs and ease the FCA burden.

NEPRA officials also highlighted structural challenges, noting that preparation of the industry performance report requires data from more than 200 institutions, making the process complex. They said efforts are under way to improve data accuracy and strengthen the effectiveness of regulatory assessments.

After concluding the hearing, NEPRA said it would thoroughly review the submitted data and issue a detailed decision following further analysis, leaving consumers and industry alike bracing for the regulator’s final call.