Power Consumers Face a Fifth Straight Tariff Hike as NEPRA Reviews Rs1.73/Unit Request

Pakistan's electricity consumers are bracing for a fifth consecutive monthly increase in their power bills, after the Central Power Purchasing Agency-Guaranteed (CPPA-G) asked the National Electric Power Regulatory Authority (NEPRA) to approve a Rs1.73 per unit fuel charges adjustment (FCA) for August 2026. NEPRA has scheduled a public hearing on the request for September 29.

What CPPA-G is asking for

CPPA-G's filing says distribution companies (Discos) were supplied 14.464 billion units of electricity in August at an average generation cost of Rs8.82 per unit. The requested Rs1.73 per unit adjustment is meant to recover the gap between that actual fuel cost and what was already built into consumers' base tariff for the month. If NEPRA approves the request as filed, it would place an additional burden of roughly Rs29.5 billion on consumers, recovered through their bills. The increase, if approved, would also apply to K-Electric's customers in Karachi, who are billed under a separate mechanism from the rest of the national grid.

Why this keeps happening month after month

The fuel charges adjustment is a monthly true-up mechanism: NEPRA sets a reference fuel cost when it determines the base tariff, and if the actual cost of generating electricity that month comes in higher — because of currency movements, the fuel mix used, or global energy prices — CPPA-G is entitled to pass the difference to consumers with roughly a two-month lag. That structure is designed to keep the sector's finances balanced rather than let losses accumulate into circular debt, which we've explained in detail separately. But it also means bills can rise sharply in months when thermal generation — more expensive than hydel or nuclear — makes up a larger share of the supply mix, exactly the dynamic behind this fifth straight increase.

The consumer side of the ledger

For households already managing a high cost of living, a fuel adjustment is layered on top of the base tariff, seasonal quarterly adjustments, and taxes — all separate line items on a Pakistani electricity bill. Successive FCA increases since around May have meant that even consumers who kept their usage flat have still seen their bills climb, a pattern distinct from — but related to — the load-shedding pressures that also shape how Pakistanis experience the power sector day to day. NEPRA's hearings are public, and past FCA requests have occasionally been trimmed or delayed after scrutiny, so the Rs1.73 figure CPPA-G has requested is not guaranteed to be the number that takes effect.

What happens next

NEPRA's September 29 hearing will determine whether the full Rs1.73 per unit request is approved, adjusted, or rejected. Any approved increase would typically appear on bills for the following billing cycle. Build Better Pakistan will update this piece once NEPRA issues its determination.

Build Better Pakistan's Energy Desk tracks NEPRA tariff decisions and their effect on household electricity bills.