Saturday, January 17, 2026

Electricity tariffs may rise up to Rs0.48 per unit on December fuel cost adjustment

CPPA-G seeks Nepra approval as average fuel cost climbs to Rs9.62 per unit

Electricity consumers may face an increase of up to Rs0.48 per unit in their power bills after the Central Power Purchasing Agency (CPPA-G) sought approval for a fuel cost adjustment (FCA) for December 2025.

CPPA-G has filed a petition with the National Electric Power Regulatory Authority, requesting an increase of Rs0.4781 per kilowatt-hour compared with the reference fuel cost. The reference price for December was Rs9.1419 per unit, while the actual average fuel cost rose to Rs9.6200 per unit.

According to data submitted to the regulator, total electricity generation in December stood at 8,487 gigawatt-hours, with 8,208 GWh delivered to distribution companies after losses. Transmission losses amounted to 259 GWh, or 3.05% of total generation.

Nuclear energy was the largest contributor to the power mix, supplying 2,126 GWh or 25.05% of total output. Hydel generation followed with 1,534 GWh (18.07%), while RLNG-based plants produced 1,464 GWh (17.24%). Local coal-fired plants generated 1,187 GWh (13.99%) and imported coal plants 860 GWh (10.13%). Gas-based generation contributed 951 GWh (11.20%).

Wind energy added 162 GWh, bagasse-based plants produced 97 GWh, and solar power contributed 74 GWh. Electricity imports from Iran accounted for 33 GWh during the month.

RLNG-based power carried the highest fuel cost at Rs20.5457 per unit, followed by electricity imports from Iran at Rs21.9685 per unit and imported coal at Rs14.3088 per unit. Gas-based generation cost Rs13.8030 per unit, while local coal stood at Rs13.1286 per unit. Nuclear power remained the cheapest source at Rs2.3009 per unit.

The total fuel cost of power generation during December was calculated at Rs77.706 billion. After accounting for prior adjustments and sales to independent power producers, the net fuel cost for electricity supplied to distribution companies rose to Rs78.957 billion, translating into an average cost of Rs9.62 per unit.

NEPRA has scheduled a public hearing on January 29 to consider CPPA-G’s request for the fuel cost adjustment.

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