Pakistan: Power consumers to pay extra 75 paisa per unit for fuel cost adjustment

Electricity consumers in Pakistan will face an additional burden of Rs9.8 billion on their August bills, as notified by the National Electric Power Regulatory Authority (Nepra). This increase stems from a fuel cost adjustment (FCA) of 75 paisa per unit, reflecting the higher costs incurred in June.

The net average fuel cost for June was approximately 41 paisa per unit higher than in July. Nepra's notification specifies that the positive FCA of Rs0.7503 per kilowatt-hour for June 2026 will be applied to all consumer categories except for lifeline consumers, electric vehicle charging stations, and prepaid electricity consumers. This adjustment impacts both K-Electric and power distribution companies (Discos) that were previously part of Wapda.

Power distribution companies and K-Electric are required to incorporate this fuel charge adjustment for June 2026 into the August 2026 billing cycle. The FCA is typically reviewed monthly and applied to consumer bills for a single month. The Central Power Purchasing Agency (CPPA) had initially requested an FCA of Rs1.20 per unit for June, citing actual average fuel charges of Rs8.9138/kWh against a reference of Rs7.7138/kWh. However, after adjustments, Nepra determined the actual fuel component to be Rs8.4641, leading to the approved FCA of Rs0.75 per unit.