NEPRA has concluded its hearing on a request to increase electricity tariffs by Rs. 1.20 per unit under the monthly Fuel Cost Adjustment (FCA) mechanism for June 2026. The proposal was submitted by the Central Power Purchasing Agency (CPPA), which cited higher fuel costs during the month.
The hearing was held on Wednesday, where CPPA officials presented details of electricity generation and fuel expenses. After hearing the arguments, NEPRA reserved its decision and said the final determination will be issued after completing its review.
According to CPPA, around 13.07 billion units of electricity were sold during June 2026. The agency explained that the reference fuel cost approved for the month was Rs. 7.71 per unit.
However, the actual fuel cost reached Rs. 8.91 per unit, creating a difference of Rs. 1.20 per unit. Based on this gap, the agency requested an adjustment under the monthly Fuel Cost Adjustment mechanism.
Officials told the regulator that the higher fuel cost mainly resulted from increased electricity generation through RLNG-based power plants. These plants are considered more expensive compared to several other sources of electricity generation.
The Fuel Cost Adjustment system allows electricity tariffs to change each month depending on the actual cost of fuel used for power generation. When fuel costs increase, consumers may face higher electricity bills. Likewise, if fuel costs decline, consumers may receive relief.
During the hearing, NEPRA Member Maqsood Anwar emphasized the need for practical measures to provide affordable electricity to consumers. He said discussions about cheaper electricity should now be followed by concrete actions that improve power affordability.
The regulator carefully reviewed the information presented by CPPA before reserving its decision. Officials stated that the authority will issue its final determination after examining all relevant financial and technical details.
If approved, the proposed adjustment would apply under the monthly FCA mechanism. The final impact on electricity consumers will depend on NEPRA’s official decision.
The monthly Fuel Cost Adjustment is a regular part of Pakistan’s electricity pricing system. It reflects changes in global fuel prices, the national energy mix, and the cost of generating electricity during a specific month.
Energy experts closely monitor these adjustments because they directly affect electricity bills for millions of consumers across the country. Changes in fuel costs, exchange rates, and power generation sources can all influence monthly tariff revisions.
The latest proposal highlights the challenges faced by Pakistan’s power sector as it manages fluctuating fuel prices and increasing electricity demand. Authorities continue to explore ways to improve efficiency while maintaining reliable electricity supply.
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For now, consumers will have to wait for NEPRA to announce its final verdict on the proposed Rs. 1.20 per unit increase. The regulator’s decision will determine whether the adjustment will be passed on to electricity users under the June 2026 Fuel Cost Adjustment.
