Electricity consumers could face another increase in their October 2026 bills after the Central Power Purchasing Agency (CPPA) requested approval to recover an additional Rs. 1.7267 per unit from consumers.
The request has been submitted to the National Electric Power Regulatory Authority (NEPRA) as part of the fuel charges adjustment for electricity generated during August. NEPRA is scheduled to hear the petition on September 29.
If approved, the proposed adjustment will apply to consumers of ex-WAPDA distribution companies. K-Electric consumers could also be affected if the adjustment is approved for them.
The requested increase is based on the difference between the reference fuel cost and the actual cost of electricity generation during August. The reference fuel cost used for August billing was Rs. 7.0998 per unit, while the actual fuel cost reached Rs. 8.8265 per unit.
The proposed increase comes at a time when consumers are already paying an additional Rs. 2.058 per unit in their September electricity bills. That adjustment was approved under the July fuel charges adjustment.
Data included in the petition shows that the cost of power generation increased considerably during August despite a rise in overall electricity production. Electricity generation increased by 5.1 percent year on year to 14,943 gigawatt hours.
However, the average generation cost rose by 37.63 percent. It increased from Rs. 7.2738 per unit in August last year to Rs. 10.0114 per unit during the same month this year.
RLNG-based electricity was among the major contributors to the increase. Its generation cost jumped 111 percent year on year to Rs. 45.928 per unit from Rs. 21.73 per unit.
Nuclear power generation also became more expensive, with its cost rising 43.3 percent to Rs. 3.1468 per unit. At the same time, nuclear electricity production fell 28.76 percent to 1,528 gigawatt hours.
Imported coal generation increased significantly, reaching 2,330 gigawatt hours compared with 1,138 gigawatt hours a year earlier. Its generation cost also rose 21.4 percent to Rs. 17.088 per unit.
Hydel power remained the largest source of electricity generation during the month, producing 5,654 gigawatt hours.
Local coal showed a different trend. Generation from local coal increased 12.76 percent to 1,626 gigawatt hours, while its generation cost dropped 54.3 percent to Rs. 5.495 per unit.
The power system also continued to use expensive thermal sources. Around 80 gigawatt hours were generated through high-speed diesel at Rs. 54 per unit, while furnace oil produced 321 gigawatt hours at a cost of Rs. 45.25 per unit.
The CPPA petition also contains adjustments that could lower the final amount recovered from consumers. Distribution companies have agreed to forego or refund Rs. 10.097 billion from previous adjustments. Another Rs. 10.617 billion relates to adjustments linked to RLNG fuel rates.
The final impact on consumers will depend on NEPRA’s decision after the hearing scheduled for September 29.
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