Power tariff to rise by 26 paisa under March FCA 

ISLAMABAD: Power tariff is set to increase by 26 paisa per unit under the March Fuel Charges Adjustment (FCA), according to the latest adjustment proposal linked to changes in the generation mix, including higher hydel output and lower RLNG-based electricity generation.

As per details, a sharp increase in hydropower generation and a steep decline in RLNG-based electricity output have reshaped Pakistan’s power mix in March 2026, as the Central Power Purchasing Agency (CPPA-G) sought a positive fuel cost adjustment (FCA) of Rs0.2660 per unit.

Pakistan’s hydel power generation rose significantly by over 62 percent, reaching 2,105 GWh in March 2026 compared to 1,297 GWh in the same month last year. In contrast, electricity generation from RLNG-fired power plants dropped sharply by 67 percent to 504 GWh from 1,528 GWh in March 2025.

According to available documents, the Central Power Purchasing Agency has sought a positive adjustment of Rs0.2660 per unit under the FCA mechanism for March 2026, which would translate into an additional financial impact of approximately Rs2.3 billion on consumers nationwide, largely due to the significant reduction in RLNG-based generation.

Despite this increase, consumers are expected to experience a lower burden compared to the previous month, as the proposed FCA of Rs0.2660 per unit will replace a higher FCA of Rs1.42 per unit charged earlier, resulting in a difference of around Rs1.16 per unit.

The National Electric Power Regulatory Authority has scheduled a public hearing on April 28, 2026, to consider the FCA petition submitted by CPPA-G.

According to the data, hydel generation remained the largest contributor to the overall energy mix, accounting for 23.55 percent (2,105 GWh) of total electricity generation. Nuclear power followed with a share of 21.95 percent (1,962 GWh), generated at a cost of Rs2.7836 per unit.

Coal-based generation also maintained a notable share in the energy mix. Local coal contributed 1,498 GWh (16.76 percent) at a cost of Rs11.14 per unit, while imported coal accounted for 1,234 GWh (13.80 percent) at Rs15.2324 per unit.

Electricity generation from gas-fired plants stood at 1,014 GWh, making up 11.34 percent of total output, at a cost of Rs13.3470 per unit. In comparison, RLNG-based generation declined to 504 GWh, contributing 5.64 percent to the total generation, at a cost of Rs24.5559 per unit.

Power generation from residual fuel oil (RFO)-based plants remained limited at 90 GWh, with a high generation cost of Rs36.1606 per unit.

Renewable energy sources, including wind, solar, and bagasse, contributed a relatively small share to the overall generation mix.

No electricity was generated using high-speed diesel (HSD) during the month, indicating avoidance of high-cost fuel options. However, electricity imports from Iran, though limited in volume, were recorded at a cost of Rs32.0085 per unit.

Fuel cost adjustments are a routine component of Pakistan’s electricity tariff mechanism, allowing variations in fuel prices and the generation mix to be passed on to consumers.

According to CPPA-G, a total of 8,939 GWh of electricity was generated in March 2026 at a cumulative fuel cost of Rs72.214 billion, resulting in an average fuel cost of Rs8.0783 per unit.

After accounting for prior period adjustments, sales to independent power producers, and transmission losses, the net electricity delivered to distribution companies stood at 8,664 GWh at an average cost of Rs8.2612 per unit.

CPPA-G maintained that since the FCA for March 2026 stands at Rs8.2612 per unit against the reference fuel cost of Rs7.9952 per unit, a positive adjustment of Rs0.2660 per unit is justified.