Power Division Says It Limited September Bill Hike to Rs2.56 Per Unit
The Power Division says it kept the September fuel price adjustment at Rs2.56 per unit, saving consumers from an increase that could have reached Rs5 to Rs6 per unit. The division credited targeted load management and cheaper fuel arrangements for holding the September fuel price adjustment at the lower level.
Officials said the measures prevented an additional burden of up to Rs3.44 per unit. The total impact of the adjustment is estimated at Rs32.7 billion, and September’s figure is expected to be Rs1.45 per unit higher than August’s.
How the September fuel price adjustment was contained
In September, authorities carried out limited load management for about two to two-and-a-half hours to cut generation from expensive furnace oil and high-speed diesel. At the same time, the government supplied imported LNG for power generation at domestic gas rates, which reduced costs by Rs0.83 per unit.
The combination kept the adjustment well below the level the division said would otherwise have applied. Without the measures, consumers would have faced an adjustment closer to Rs5 or Rs6 per unit, the statement said.
Why generation costs rose
The division blamed rising global oil prices. Crude crossed $120 per barrel amid a regional dispute, while the base electricity tariff was set when crude stood at around $70 per barrel. That gap pushed generation costs higher through the year.
Pakistan continued to secure re-gasified LNG through contractual supplies and additional spot cargoes, even after Qatar declared force majeure on some supplies. The division warned that further RLNG shortages could force power producers to rely more heavily on furnace oil and high-speed diesel, which would push generation costs up again.
From January to August 2026, the combined effect of fuel price and quarterly tariff adjustments limited the extra burden on consumers to Rs0.65 per unit, equal to a 1.9 percent rise over the base tariff. The division also said a package encouraging industrial and agricultural consumers to use more electricity had increased grid consumption.
What this means for your bill
Monthly fuel price adjustments flow through to consumer bills with a short lag, so the September figure will show up in bills arriving in the coming weeks. For households, the Rs2.56 per unit figure is the difference between a noticeably higher bill and a much steeper one.
The mechanism itself is a pass-through. NEPRA allows distribution companies to recover changes in fuel costs each month, based on the actual cost of generation in that month. When oil prices rise, the adjustment rises. When the government manages fuel costs down, as it says it did in September, the adjustment stays lower.
The statement also lands amid a wider regional conversation about economic direction, including the IMF’s projection that India will be the world’s fourth-largest economy in 2027, a reminder of how energy costs shape competitiveness across the region.
FAQs
What is the September fuel price adjustment?
It is the monthly pass-through of changes in electricity generation fuel costs for September, set at Rs2.56 per unit. It will appear in consumer bills arriving in the coming billing cycle.
How did the Power Division limit the increase?
Through about two to two-and-a-half hours of load management in September and by supplying imported LNG for generation at domestic gas rates, which cut costs by Rs0.83 per unit.
How much higher could bills have been?
The division said the adjustment could have reached Rs5 to Rs6 per unit, so the measures prevented an additional burden of up to Rs3.44 per unit.
Why did generation costs rise in September?
Global oil prices crossed $120 per barrel amid a regional dispute, against roughly $70 per barrel assumed when the base tariff was set.
What happens if RLNG supplies tighten further?
The division warned that power producers would have to rely more on expensive furnace oil and high-speed diesel, pushing generation costs and future adjustments higher.
