Power bills set to rise as DISCOs seek Rs10bn additional recovery

Electricity consumers across Pakistan, including K-Electric users, may face an additional burden of more than Rs10 billion as power distribution companies seek an 82-paisa-per-unit fuel charges adjustment for May 2026, citing higher generation costs.

The Central Power Purchasing Agency-Guaranteed (CPPA-G), on behalf of power distribution companies (DISCOs), has requested the National Electric Power Regulatory Authority (NEPRA) to approve a positive fuel charges adjustment (FCA) of Rs0.8173 per unit for May 2026.

If approved, the adjustment will be recovered from DISCO and K-Electric consumers under the monthly FCA mechanism provided in NEPRA’s tariff determinations and in accordance with Section 31(7) of the NEPRA Act.

NEPRA has scheduled a public hearing for June 30, 2026, to consider CPPA-G’s request for an increase of Rs0.8173 per unit over the reference fuel cost of Rs8.4315 per unit.

According to data submitted by CPPA-G, total electricity generation during May 2026 stood at 12,638 gigawatt-hours (GWh), at an average fuel cost of Rs9.0857 per unit.

After accounting for transmission losses, energy adjustments and prior-period corrections, net electricity supplied to DISCOs amounted to 12,335 GWh at a cost of Rs9.2488 per unit.

Hydropower remained the largest source of electricity, contributing more than 33% of total generation. Nuclear power accounted for 14.25% of the energy mix, followed by imported coal at 13.54%, regasified liquefied natural gas (RLNG) at 11.81% and local coal at 11.66%.

Despite its relatively small share in the generation mix, furnace oil-based generation remained among the most expensive sources of electricity, costing Rs42.1809 per unit.

Electricity imported from Iran cost Rs31.9341 per unit, while the cost of RLNG-based generation stood at Rs30.6457 per unit.

The cost of electricity generated from imported coal was recorded at Rs17.9497 per unit, followed by gas-fired generation at Rs13.6315 per unit, local coal at Rs11.1849 per unit and bagasse-based generation at Rs10.8821 per unit.

Nuclear generation was among the cheapest sources, costing Rs2.701 per unit and helping contain the overall cost of electricity despite the use of higher-cost thermal sources.

Under the federal government’s policy guidelines for the uniform application of fuel charges adjustments, any FCA approved by NEPRA for DISCO consumers will also apply to K-Electric consumers.

Approval of the proposed adjustment would increase electricity bills for households, commercial consumers and industries in the upcoming billing cycle.