Electricity prices may rise Rs1.73/unit under April fuel adjustment

ISLAMABAD: Electricity prices in Pakistan may increase by Rs1.7251 per unit under the April monthly fuel charges adjustment, but consumers are expected to receive a net relief of 20 paisa per unit in June after a Rs1.93 per unit quarterly adjustment reduction offsets the proposed monthly increase, the Power Division said following a National Electric Power Regulatory Authority (NEPRA) hearing on Tuesday.

NEPRA held the hearing on a request submitted by the Central Power Purchasing Agency (CPPA) for the April fuel charges adjustment.

During the hearing, CPPA said the energy market in April was affected by regional conflict conditions, which influenced fuel supply and generation costs.

The agency said no imported liquefied natural gas (LNG) was available during the month, affecting the overall fuel mix used for power generation. 

CPPA informed the regulator that both contract-based and spot LNG cargoes were received in May, and LNG-based power plants were operated accordingly.

It also said electricity consumption declined across all categories except industry, indicating a change in demand patterns during the period under review.

The agency said it had completed daily planning for LNG supply for the next two months and did not expect major shocks in monthly fuel adjustments for May, June and July.

After the hearing, the Power Division spokesperson said electricity consumers would still receive net relief in June because the Rs1.93 per unit quarterly adjustment reduction had already been passed on.

The spokesperson said that even after the Rs1.73 per unit monthly fuel adjustment, electricity prices would remain lower than previous levels and June tariffs would stay aligned with the January-May 2026 period.

The Power Division linked global energy market volatility to geopolitical tensions, including the Iran-Israel conflict, saying Brent crude prices rose from around $70 per barrel to nearly $120 per barrel at one stage and increased pressure on generation costs worldwide.

According to the Power Division, reforms and operational efficiencies, including lower line losses and improved demand management, also contributed to stabilising the power sector.

It said consumers were protected from an estimated Rs38 billion in additional burden, while around Rs65 billion in quarterly adjustments was passed on as relief.

Officials said electricity prices could have increased significantly without these measures, but policy decisions helped reduce the impact on consumers across the country.

Separately, NEPRA took notice of complaints regarding prolonged load shedding by K-Electric during intense heat conditions.

The regulator sought a detailed report from K-Electric over complaints related to extended power outages, failure to follow load shedding schedules, delayed fault repairs and repeated public complaints from different areas.

NEPRA officials noted that consumers had reported long and unannounced power cuts, while delays in maintenance had worsened conditions in several localities.

K-Electric was directed to submit a detailed explanation and operational report to the regulator.