ISLAMABAD: The power division on Thursday projected an additional fuel cost adjustment (FCA) of Rs2.56 per unit for electricity consumed in September, translating into an estimated Rs32.7 billion burden on consumers in November bills.
In a statement, the division said the adjustment would have been significantly higher, by around Rs3.44 per unit, but targeted load management helped contain the price shock.
“The Ministry of Energy (Power Division) has averted a potential Rs5-6 per unit hike in the September 2026 Fuel Price Adjustment (FPA) through timely measures, including targeted load management, limiting the projected adjustment to Rs2.56 per unit despite rising international fuel prices and constraints on LNG supplies,” the statement said.
Over the past two months, the power division has started issuing advance estimates before the Central Power Purchasing Agency (CPPA) formally makes the regulatory filing required for monthly fuel cost adjustments.
“Targeted load management and other measures helped limit the impact of expensive fuels used for power generation, saving consumers from an additional burden of up to Rs3.44 per unit,” the division said.
It confirmed that targeted load management of around two to two-and-a-half hours during September helped reduce reliance on costly alternative fuels, including furnace oil and high-speed diesel and contain the anticipated increase in the FCA.
The division added that supplying imported re-gasified liquefied natural gas (RLNG) for power generation at domestic gas prices had further eased the burden on consumers by 83 paise per unit.
“Consequently, the September FPA is expected to be Rs1.45 per unit higher than that of August,” the statement said. The August FCA was Rs1.11 per unit, while the estimated financial impact of the September adjustment is Rs32.7bn on consumers’ electricity bills in November.
The power division said international fuel prices had risen sharply amid regional conflicts and disruptions to fuel supply chains following the closure of the Strait of Hormuz. Brent crude prices had surged beyond $120 per barrel, compared with the benchmark of around $70 per barrel assumed while determining the base electricity tariff.
Despite Qatar’s declaration of force majeure, Pakistan continued efforts to meet its RLNG requirements through available contracted supplies and additional spot cargoes where necessary, it added.
The division also claimed that the combined impact of fuel price adjustments and quarterly tariff adjustments during January-August had been limited to 65 paise per unit, equivalent to an increase of only 1.9pc over the base electricity tariff.
It attributed this partly to tariff rationalisation measures and an additional electricity consumption package for industrial and agricultural consumers, which it said encouraged greater use of power from the national grid.
However, industrial consumers have disputed the claimed benefits of the support package. They contend that the Rs22.96 per unit marginal cost rate benefits only a limited number of consumers, while an actual marginal cost of around Rs34 per unit results in an additional burden of about Rs11 per unit being fed into the average tariff, putting a burden on all consumers.
At their request, Nepra last week held a public hearing on revising or suspending the incremental package, but a decision is still awaited.
The power division said it was continuing to monitor developments in international fuel markets and supply chains while taking measures to minimise the impact of external price shocks on electricity consumers.
Published in Dawn, October 16th, 2026
