ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a fuel charges adjustment (FCA) of Rs2.3673 per unit for September 2026, which will be reflected in electricity bills issued in November.
The approved adjustment is lower than the Rs2.56 per unit increase sought by the Central Power Purchasing Agency-Guaranteed (CPPA-G). In its petition, the agency reported an actual fuel cost of Rs10.0220 per unit for September, compared with the reference fuel cost of Rs7.45 per unit.
The adjustment will apply to consumers of former WAPDA distribution companies (XWDISCOs) and K-Electric under the government’s uniform tariff policy. However, lifeline consumers, electric vehicle charging stations and consumers opting for prepaid electricity tariffs will remain exempt. Electricity consumption under the Incremental Consumption Package will also be covered.
NEPRA has directed distribution companies to show the additional amount separately in November 2026 bills. The adjustment will be calculated on the basis of electricity units billed during September. If November bills have already been issued, the amount may be recovered in the following month’s bills.
Changes in Power Generation and Fuel Costs
During a public hearing held on October 29, CPPA-G informed NEPRA that electricity generation in September was 0.98 per cent higher than the level projected in the reference tariff.
During the month, electricity generation from imported coal increased from 1.14 billion units to 2.16 billion units, while its fuel cost rose from Rs11.78 to Rs17.23 per unit.
In contrast, hydropower generation declined from 5.05 billion units to 4.83 billion units, while electricity generation from RLNG-based plants fell from 1.48 billion units to 0.80 billion units. The fuel cost of RLNG-based electricity stood at Rs39.74 per unit.
NEPRA Reviews Transmission Losses and Fuel Adjustments
During the hearing, participants raised questions about the use of expensive fuels, increased reliance on imported coal and transmission losses.
After reviewing the matter, NEPRA set the permissible transmission loss limit at 2.50 per cent for the 500kV and 220kV networks, while allowing up to 4.3 per cent for the PMLTC HVDC line.
The regulator also provisionally approved a negative adjustment of Rs10.617 billion relating to RLNG-based power plants, with the objective of providing relief to consumers. However, CPPA-G has been directed to submit complete supporting details with its next monthly adjustment petition.
According to NEPRA, the national average fuel charges adjustment was determined at Rs2.3673 per unit after reviewing relevant costs and electricity procurement arrangements.
