ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday approved an additional financial burden of about Rs9.8 billion on electricity consumers by allowing a fuel cost adjustment (FCA) of 75.03 paise per unit in August electricity bills.
The net impact on consumers in August, however, will be an increase of around 41 paise per unit, as the new FCA of 75.03 paise per unit will replace the 34-paisa FCA that was applicable in July and has now expired.
In a notification, Nepra said it had decided that the positive FCA for June 2026, amounting to Rs0.7503 per kilowatt-hour (kWh), would be applicable to all consumer categories of K-Electric (KE) and ex-Wapda distribution companies (XWDISCOs), except lifeline consumers, electric vehicle charging stations (EVCS), and pre-paid electricity consumers of all categories who have opted for the pre-paid tariff.
The regulator said the higher FCA would also apply to consumers under the incremental consumption package. Distribution companies and KE have been directed to reflect the June 2026 fuel cost adjustment in electricity bills issued for August 2026.
The Central Power Purchasing Agency (CPPA) had reported that the actual average fuel cost for June 2026 stood at Rs8.9138 per kWh, compared to the reference fuel cost of Rs7.7138 per kWh approved under the notified consumer-end tariff. Based on this, the CPPA had sought an FCA of Rs1.20 per unit for June.
After making adjustments, however, Nepra determined the actual fuel cost at Rs8.4641 per kWh, instead of the Rs8.9138 per kWh claimed by the CPPA, and consequently approved an FCA of 75.03 paise per unit instead of the requested Rs1.20 per unit.
The Power Division and its entities reported a 5.6 per cent decline in electricity generation during June compared to projections used in determining the reference tariff.
They attributed the reduction to public holidays, relatively lower temperatures, and increased self-consumption by net-metering consumers.
Nepra also expressed concern over Rs4.9bn in partial loading charges incurred during the month. The CPPA argued that these costs did not result from operational inefficiencies but were caused by reduced daytime electricity demand due to the growing share of rooftop solar generation. As a result, thermal power plants had to operate at partial loads during daylight hours.
The Power Division has also informed the regulator that, if daytime electricity demand continues to decline because of increasing rooftop solar installations, it may become necessary to curtail generation from must-run renewable energy plants in the coming years. Under the existing tariff mechanism, fluctuations in fuel costs are passed on to consumers through monthly automatic adjustments.
Quarterly tariff revisions, meanwhile, incorporate changes in power purchase prices, capacity payments, variable operation and maintenance costs, use-of-system charges, and impact of transmission and distribution losses into the base tariff notified by the government.
Published in Dawn, August 8th, 2026
