Power distribution companies have sought regulatory approval to recover an additional Rs2.5624 per unit from consumers through electricity bills under the September 2026 fuel charges adjustment. The proposed increase is also expected to apply to K-Electric consumers under the government’s uniform tariff policy.
The Central Power Purchasing Agency-Guarantee, acting on behalf of the distribution companies, has filed the application with the National Electric Power Regulatory Authority. The regulator has scheduled a public hearing on October 29 to consider the request.
Fuel charges adjustment: how the Rs2.56 figure was reached
According to the application, the reference fuel cost stood at Rs7.4596 per unit. The proposed adjustment of Rs2.5624 per unit reflects the difference between that reference cost and the actual fuel-related charges incurred during September.
The data submitted to Nepra shows total electricity generation of 13,217 gigawatt-hours during the month. Net electricity supplied to the distribution companies amounted to 12,760 GWh after accounting for transmission losses and electricity sold to independent power producers.
Hydropower remained the largest source of generation, contributing 4,834 GWh, or 36.58 per cent of the total. Nuclear power plants generated 1,893 GWh, accounting for 14.32 per cent, while imported coal-fired plants produced 2,155 GWh, or 16.31 per cent.
The cost breakdown explains why the adjustment is being sought. Imported coal generation cost Rs37.142 billion, translating into Rs17.2329 per unit. Liquefied natural gas-based generation produced 804 GWh, or 6.08 per cent of the total, at a reported cost of Rs39.37 billion, equivalent to Rs39.7372 per unit.
High-speed diesel was the most expensive major fuel source in the September data. It generated 213 GWh at a cost of Rs13.262 billion, translating into Rs62.1381 per unit. Furnace-oil-based plants contributed 263 GWh at Rs11.812 billion, or Rs44.8613 per unit, while gas-fired generation accounted for 1,066 GWh at Rs13.0414 per unit.
Local coal-fired plants generated 1,327 GWh at Rs5.9946 per unit, while nuclear generation was reported at Rs2.9045 per unit. Wind power contributed 464 GWh and bagasse-based plants generated 35 GWh. The data also indicates a continuing rise in nuclear generation costs over recent months, though the figures would need to be compared with previous monthly filings to establish the extent of the increase.
What it means for household bills
If Nepra approves the request after the October 29 hearing, the additional Rs2.56 per unit will appear in an upcoming billing month as a separate fuel adjustment line. For a household consuming 300 units, that translates into roughly Rs769 extra on the bill, before taxes and other surcharges.
The filing continues a pattern of monthly adjustments that have kept electricity costs volatile for consumers. Readers tracking their bills can refer to Feature Pakistan’s electricity bill explainer for October 2026, while K-Electric consumers should note the Sindh High Court’s suspension of Nepra’s tariff review for the utility.
The pressure on power costs mirrors the wider strain on industry. Factory output stalled in August as steel and fertiliser slumped, with energy costs among the headwinds cited by producers. Fuel prices at the pump have also been moving under the new daily pricing regime, as covered in our petrol price tracker.
Nepra’s public hearing on October 29 will decide whether the full Rs2.5624 is allowed, reduced, or rejected. Consumer and industry representatives typically argue for disallowances at these hearings, particularly around the costliest fuels.
Original reporting: The Express Tribune.
Frequently asked questions
How much extra will consumers pay if the hike is approved?
Rs2.5624 per unit. A household using 300 units would pay roughly Rs769 more in the month the adjustment is billed, before taxes and surcharges.
When will Nepra decide on the fuel charges adjustment?
The regulator has scheduled a public hearing on October 29 to consider the distribution companies’ application for September 2026.
Will the hike apply to K-Electric consumers?
Yes, the proposed increase is expected to apply to K-Electric consumers as well under the government’s uniform tariff policy.
Which fuel was the most expensive in September?
High-speed diesel, at Rs62.1381 per unit, followed by furnace oil at Rs44.8613 per unit. Hydropower and nuclear remained the cheapest large sources.
