Energy & Consumer Affairs | July 2026 | 4 min read
⚡ Quick Takeaways
- CPPA has sought a Rs1.20 per unit increase under June 2026 fuel cost adjustment.
- NEPRA has completed the hearing and reserved its final decision.
- Electricity sales during June stood at about 13.07 billion units.
- Actual fuel cost reached Rs8.91 per unit against the Rs7.71 reference cost.
- Officials linked the higher cost mainly to more generation from expensive RLNG plants.
Electricity consumers may face another increase in bills after NEPRA completed its hearing on CPPA’s request for a June fuel cost adjustment. The proposed Rs1.20 per unit hike is not a permanent base tariff increase, but if approved, it would still add pressure to household and business bills in the coming billing cycle.
| Rs1.20 Proposed FCA per unit |
13.07bn Units sold in June |
Rs8.91 Actual fuel cost/unit |
NEPRA Reviews Rs1.20 Per Unit Fuel Cost Hike
The National Electric Power Regulatory Authority concluded its hearing on the Central Power Purchasing Agency’s request to increase electricity tariffs by Rs1.20 per unit under the monthly Fuel Cost Adjustment mechanism for June 2026. After hearing the arguments and reviewing the submitted data, the regulator reserved its decision, which will be issued after completion of its internal review.
The proposed adjustment is based on the difference between the reference fuel cost already built into the tariff and the actual fuel cost of electricity supplied during the month. CPPA officials said 13.07 billion units of electricity were sold in June. The reference fuel cost had been set at Rs7.71 per unit, while actual fuel cost reached Rs8.91 per unit, creating the Rs1.20 per unit gap now before the regulator.
| Context: FCA is a monthly pass-through adjustment. It reflects fuel cost changes and is separate from the regular base electricity tariff. |
Why Fuel Cost Went Above Reference
Officials attributed the higher cost mainly to increased generation from RLNG-based power plants. RLNG generation is usually more expensive than hydropower and nuclear power, so even a moderate change in the generation mix can raise the average fuel cost passed on to consumers. When cheaper sources do not cover demand, the system relies more on costlier thermal plants.
The issue is especially sensitive because power bills already include several layers of charges, taxes and adjustments. Even a fuel adjustment that appears small on a per-unit basis can become noticeable for consumers using higher monthly units. For small businesses, shops and service providers, another adjustment can also raise operating costs at a time when electricity affordability remains a major complaint.
| FCA Item | June 2026 Figure | Consumer Impact |
| Requested increase | Rs1.20 per unit | Possible bill increase if approved |
| Reference fuel cost | Rs7.71 per unit | Already built into tariff |
| Actual fuel cost | Rs8.91 per unit | Higher cost creates adjustment gap |
| Units sold | 13.07 billion units | Large billing base for recovery |
| Main driver | Costlier RLNG generation | Raised average generation cost |
What Consumers Should Expect Next
NEPRA has not yet approved the increase. The regulator will issue a written decision after examining the CPPA request, generation data and stakeholder comments. If the adjustment is allowed, it will be recovered through electricity bills according to the applicable notification and billing cycle.
Consumers should also understand that the final approved amount can differ slightly from the requested figure. NEPRA may accept the full request, reduce it after scrutiny, or make other changes depending on verified costs, previous adjustments and regulatory treatment of different consumer categories.
| Watch point: The final notification will confirm the exact per-unit impact, billing month and consumer categories covered by the adjustment. |
Cheaper Power Needs Practical Delivery
During the hearing, NEPRA Member Maqsood Anwar urged authorities to move beyond discussions about cheaper electricity and take practical steps to deliver it to consumers. The comment reflects a wider concern in Pakistan’s power sector: lower-cost generation exists in the system, but consumers often still face high bills because of fuel mix, capacity payments, losses, circular debt and taxes.
The June FCA request again shows why power-sector planning matters. If Pakistan can increase reliance on cheaper domestic and renewable sources while reducing dependence on costly imported fuels, monthly fuel adjustments can become less painful. Until then, consumers remain exposed to changes in fuel prices and generation patterns.
| Relief path: A cheaper generation mix, lower losses and timely dispatch planning can reduce repeated fuel-cost pressure on consumers. |
Disclaimer: This article is based on NEPRA hearing details and publicly reported CPPA figures available at the time of writing. Final tariff impact may change after NEPRA’s written decision.
