Energy & Consumer Affairs Desk  |  April 2026  |  4 min read

 

⚡ Quick Takeaways

•       CPPA has filed a fuel cost adjustment request with Nepra seeking recovery of Rs0.26 per unit underbilled to consumers in March 2026. •       March bills were based on a reference fuel cost of Rs7.99/unit; actual generation cost was Rs8.26/unit — a shortfall of Rs0.26/unit. •       Total electricity generated in March reached 8,939 GWh at a cost of Rs72.21 billion (approx. Rs8.07/unit before transmission losses). •       If approved by Nepra, the surcharge will appear in May bills and will also apply to K-Electric consumers. •       Electricity demand in March rose 6.3% year-on-year and 16% over February, driven by economic activity and seasonal patterns.

 

 

Pakistani electricity consumers face the prospect of higher bills from May after power distribution companies filed a request with the National Electric Power Regulatory Authority to recover an undercharged fuel cost of Rs0.26 per unit from March 2026 billing. The Central Power Purchasing Agency, acting on behalf of ex-Wapda distribution companies, submitted data showing that consumers were billed on a reference fuel rate that fell short of actual generation costs — a gap the industry now seeks to recover through a standard fuel cost adjustment mechanism.

 

By the Numbers

Rs0.26/unit Requested fuel cost surcharge

8,939 GWh Total generation in March 2026

Rs72.21 bn Total fuel cost for March generation

 

 

What Is a Fuel Cost Adjustment and Why Is It Being Filed?

Pakistan’s electricity tariff system incorporates a monthly fuel cost adjustment mechanism. Consumer bills are calculated using a reference fuel cost — a pre-set rate that reflects anticipated generation costs. When actual generation costs differ from this reference, the gap is recovered or rebated through a subsequent month’s bill. It is a standard regulatory tool, not an emergency measure.

In March 2026, the reference fuel cost built into bills was Rs7.99 per unit. However, the actual average cost of generating electricity that month came out at Rs8.26 per unit, once total generation costs of Rs72.21 billion were divided across 8,664 GWh of net electricity supplied to distribution companies after accounting for transmission losses. The Rs0.26 per unit difference is what CPPA is now seeking to recover from consumers through May bills.

Fuel Cost Component	Rate (Rs/unit)	Note
Reference fuel cost (billed in March)	Rs7.99	Pre-set tariff basis
Actual fuel cost (March generation)	Rs8.26	Net cost to distributors
Requested recovery (surcharge)	Rs0.26	Pending Nepra approval

 

 

March 2026 Generation Mix

The month’s electricity output of 8,939 GWh was produced across a diversified fuel mix. Hydropower contributed the largest share at 23.55%, reflecting seasonal water availability. Nuclear generation provided 21.95% of total output at 1,962 GWh. Local coal accounted for 16.76% (1,498 GWh) and imported coal for 13.8% (1,234 GWh). RLNG-based generation — typically among the most expensive sources — contributed only 5.64%, or 504 GWh, the lowest share among thermal fuel types. The relatively low RLNG contribution reflects ongoing gas supply constraints.

Source	GWh	Share
Hydropower	~2,104	23.55%
Nuclear	1,962	21.95%
Local Coal	1,498	16.76%
Imported Coal	1,234	13.80%
RLNG	504	5.64%
Other Sources	~1,637	~18.30%
Total	8,939 GWh	100%

 

 

Demand Trends and Fiscal Year 2026 Context

March electricity demand climbed 6.3% compared to the same month last year, signalling a cyclical strengthening of economic activity. Month-on-month, demand jumped 16% over February — a seasonal pattern as temperatures begin rising and agricultural and industrial activity picks up. For the first nine months of fiscal year 2026, cumulative generation reached 93,134 GWh, a 3.3% increase over the corresponding period last year.

📊 Analysis — What This Means for Consumers: The Rs0.26/unit surcharge is relatively modest in isolation. However, consumers already facing elevated tariffs from prior adjustments will absorb it on top of existing charges. On a 300-unit monthly bill, the additional cost would be approximately Rs78. Nepra’s approval is required and not automatic — the regulator may hold public hearings before deciding.

 

🔴 Consumer Alert: If Nepra approves the request, the Rs0.26/unit fuel cost adjustment will appear in May 2026 electricity bills. The surcharge applies to all ex-Wapda distribution company consumers and K-Electric consumers alike. No consumer action is required — if approved, the charge is applied automatically.

 

 

DISCLAIMER: All information in this article is based on publicly available data and official statements. This content is intended for general informational purposes only.