Pakistan Power Consumers Face Additional Fuel Cost Adjustment in April Bills

Islamabad – Power consumers in Pakistan are bracing for another increase in electricity bills, as power companies have requested a fuel cost adjustment (FCA) of Rs1.64 per unit for February consumption. This comes after an existing positive FCA of Rs1.63 per unit already being charged this month, adding to the financial burden on households, and businesses.

CPPA Request and Nepra Hearing

The Central Power Purchasing Agency (CPPA) submitted the petition seeking the higher FCA, citing increased fuel costs for power generated in February. Despite over 75% of power generation coming from domestic and cheaper sources, the CPPA argues the adjustment is necessary. The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on March 31, 2026, to review the request and gather public feedback. Dawn, Pakistan Today

Increased Demand and Fuel Costs

Electricity consumption in February was approximately 11.42% higher compared to the same month last year, even though it was about 15% lower than in January 2026. The power companies claim an average fuel cost of Rs8.37 per unit for February, compared to Rs8.23 per unit in February 2025. The CPPA reported that 7,427 billion units (gigawatt-hours) were delivered to distribution companies (Discos) in February, down from 8,762 GWh in January. Dawn

Financial Impact and Total Collection

If approved by Nepra, the additional FCA is expected to generate approximately Rs12.2 billion in revenue for power companies, including ex-Wapda Distribution Companies and K-Electric, in the April billing cycle. Dawn, Pakistan Today

Fuel Source Breakdown

According to CPPA-G data, power generation increased by 11% in February 2026, reaching 7,696 GWh compared to 6,945 GWh in February 2025. Hydropower regained its leading position with a 23% share after the annual canal closures, though still below its full potential. Nuclear power contributed 18.83%, while local coal accounted for 16% and imported coal for nearly 15%. Regasified Liquefied Natural Gas (RLNG) based power generation saw a significant decrease, contributing only 9.47% compared to 22% in January. Notably, there was no generation from furnace oil or high-speed diesel in February. Business Recorder

Fuel Costs by Source

The cost of power generation varied significantly by fuel source. RLNG was the most expensive at Rs23.21 per unit, followed by local gas at Rs13.59, imported coal at Rs13.56, and local coal at Rs12.22 per unit. Nuclear fuel cost Rs2.50 per unit, while renewable sources (wind, bagasse, and solar) had no fuel cost, with bagasse contributing 1.19% at Rs10.39 per unit. Electricity imported from Iran accounted for 0.45% of the total, with a fuel cost of Rs23.21 per unit. Business Recorder

Reference vs. Actual Fuel Costs

The CPPA-G reported a reference fuel cost of Rs6.7337 per unit for February, while the actual cost reached Rs8.3743 per unit, justifying the proposed positive adjustment of Rs1.6406 per unit. Business Recorder