Nepra approves 33.64 paisa per unit hike in May fuel charges for Discos, K-Electric

The National Electric Power Regulatory Authority has approved a positive Fuel Charges Adjustment of 33.64 paisa per unit for May 2026 for consumers of power distribution companies and K-Electric.

The approved adjustment is lower than the 81.73 paisa per unit increase requested by the Central Power Purchasing Agency-Guaranteed.

CPPA-G had submitted that the actual fuel cost for May stood at Rs 9.2488 per unit against the reference fuel cost of Rs 8.4315 per unit. However, Nepra determined the actual fuel cost at Rs8.7679 per unit, resulting in a positive adjustment of 33.64 paisa per unit.

A public hearing on the matter was held on June 30, 2026. It was attended by officials and industry stakeholders, including Rehan Javed from the Korangi Association of Trade and Industry.

During the hearing, Amir Sheikh asked about the expected Quarterly Tariff Adjustment for the ongoing quarter in view of lower electricity consumption. He also sought details on when consumers would receive the benefit of lower oil prices, reduced Regasified Liquefied Natural Gas terminal charges and the captive gas levy.

CPPA-G said the Quarterly Tariff Adjustment would be finalised after actual figures for June 2026 become available. It added that the Pakistan Power Management Company does not expect the adjustment to be significantly high.

On fuel price reductions, CPPA-G said any relief would be reflected in the relevant monthly Fuel Charges Adjustment under the applicable regulatory mechanism. It said it had no information regarding waivers in Regasified Liquefied Natural Gas terminal charges, while the captive gas levy matter remained sub judice.

Imran Shahid, representing Jamaat-e-Islami, raised concerns that the Fuel Charges Adjustment had increased due to the underutilisation of cheaper power plants and the inclusion of part-load charges.

The Independent System and Market Operator said efficient generation units were dispatched according to system demand, while CPPA-G said part-load charges were claimed under existing agreements.

According to Nepra’s decision, Discos and K-Electric will include the May 2026 Fuel Charges Adjustment in consumer bills for July 2026.