NEPRA has reserved its decision on CPPA’s request for a Rs1.73 per unit increase under the August 2026 fuel adjustment mechanism.
ISLAMABAD: Electricity consumers, including K-Electric customers, could face an additional financial burden of Rs29.5 billion if the proposed Rs1.73 per unit tariff increase is approved under the fuel adjustment mechanism for August 2026.
The National Electric Power Regulatory Authority (NEPRA) held a public hearing Tuesday to examine a petition submitted by the Central Power Purchasing Agency (CPPA), seeking an increase of Rs1.73 per unit in electricity tariffs.
NEPRA reserved its decision after hearing the arguments and reviewing the figures presented by the CPPA. The regulator said a detailed decision would be issued after a comprehensive review of the financial data and calculations submitted during the proceedings.
CPPA officials told the hearing that Rs20.7142 billion of the requested adjustment was directly linked to payments made to Independent Power Producers (IPPs).
Power generation in August stood at 14.464 billion units, with electricity produced at an average cost of Rs8.82 per unit. The reference rate was Rs7.0998 per unit.
Hydropower accounted for the largest share of the generation mix, contributing 37.84% of total electricity production. Imported coal was the second-largest source at 15.59%, followed by local coal at 10.86%.
LNG-based generation contributed 8.48% of the total power mix, while local gas accounted for 7.04%. LNG was the most expensive source of electricity generation during the period, with its cost reaching as high as Rs45.92 per unit.
The CPPA also presented adjustment claims submitted by several power producers during the hearing.
The claims included Rs1.3246 billion for Chashma Nuclear Power Plant (C2), Rs528.1 million for Tavanir Iran, Rs183.8 million for Punjab Thermal Power Private and Rs159 million for Thar Coal Block-I Power Generation Company.
Nishat Power Limited submitted a claim of Rs36.1 million, along with an additional Rs1.6 million in CV adjustments. Other claims included Rs26.3 million from Engro Powergen Thar, Rs13.9 million from Narowal Energy Limited and Rs286,000 from Lucky Electric Power Company.
A provisional adjustment of Rs10.6168 billion for July and August has also been set aside for power plants operating on Regasified Liquefied Natural Gas (RLNG).
The proposed increase will take effect only if approved by NEPRA following its review of the CPPA petition and the financial calculations presented at the hearing.
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