DISCOs seek Rs1.20 per unit tariff increase for June fuel adjustment

Electricity consumers across Pakistan could face a tariff increase of Rs1.20 per unit after the National Electric Power Regulatory Authority (NEPRA) scheduled a hearing on the Central Power Purchasing Agency-Guarantee Limited’s (CPPA-G) request for the June 2026 fuel charges adjustment.

NEPRA will hold the public hearing on July 29 to consider CPPA-G’s application seeking an increase of Rs1.20 per kilowatt-hour for electricity supplied by ex-WAPDA distribution companies (XWDISCOs).

The adjustment has been sought under the monthly fuel cost mechanism prescribed under the NEPRA Act, 1997, after comparing the actual cost of electricity generation in June with the reference fuel cost already included in the notified tariff.

According to CPPA-G’s data, total electricity generation in June 2026 stood at 13,431 gigawatt-hours at an average fuel cost of Rs8.9885 per unit.

After accounting for previous adjustments, energy sales to independent power producers and transmission losses, net electricity delivered to distribution companies amounted to 13,066GWh at an effective fuel cost of Rs8.9138 per unit.

CPPA-G has sought an increase of Rs1.20 per unit over the reference fuel charge of Rs7.7138 per unit already included in consumers’ tariffs.

If approved, the adjustment will also apply to K-Electric consumers under the federal government’s uniform fuel cost adjustment policy.

Hydropower remained the largest source of electricity generation in June, contributing 5,242GWh, or 39.03% of the total. As hydropower does not involve fuel costs, no fuel expense was recorded for this source.

Imported coal was the second-largest contributor, generating 1,699GWh, or 12.65% of the total, at a fuel cost of Rs16.6524 per unit.

Local coal generated 1,358GWh, accounting for 10.11% of total electricity production, at a fuel cost of Rs11.4629 per unit.

Nuclear power supplied 1,800GWh, or 13.40% of total generation, at a fuel cost of Rs2.8501 per unit, making it one of the lowest-cost conventional sources during the month.

RLNG-based power plants generated 1,480GWh, representing 11.02% of electricity production, at a fuel cost of Rs35.5087 per unit.

Natural gas-fired plants contributed 867GWh, or 6.45% of total generation, at a fuel cost of Rs13.6820 per unit.

Among renewable sources, wind power generated 676GWh, or 5.03% of the total, while solar contributed 110GWh, or 0.82%. Both sources recorded no fuel cost.

Electricity imported from Iran accounted for 47GWh, or 0.35% of total supply, at a fuel cost of Rs27.6635 per unit.

Bagasse-based plants generated 46GWh, also representing 0.35% of total generation, at a fuel cost of Rs10.8821 per unit.

Residual furnace oil-based generation remained limited to 100GWh, or 0.74% of the total, but carried a fuel cost of Rs52.0900 per unit.

High-speed diesel-based generation was almost negligible at 5GWh, or 0.04%, but remained the most expensive source at Rs57.2388 per unit.

NEPRA has invited consumers, stakeholders and other interested parties to participate in the hearing at NEPRA Tower before it makes a final decision on the proposed June 2026 fuel charges adjustment.