Pakistan Electricity Prices Set To Rise By Rs0.82 Per Unit Due To CPPA Request

Electricity consumers across Pakistan may face another price increase as the Central Power Purchasing Agency (CPPA) has sought an increase of 82 paisa per unit under the monthly fuel price adjustment for May 2026.

The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which will hear the case on June 30. If approved, the proposed adjustment is expected to impose an additional burden of around Rs12 billion on consumers, officials said.

Under federal policy guidelines on uniform FCA application, any adjustment approved will also apply to consumers of K-Electric. According to the petition, 12.638 billion units of electricity were generated in May, with the average fuel cost recorded at Rs9.25 per unit.

This compares with an estimated reference fuel cost of Rs8.43 per unit, resulting in a difference that CPPA has proposed to recover from consumers through the adjustment mechanism. The Central Power Purchasing Agency-Guarantee (CPPA-G) has calculated an increase of Rs0.8173 per kilowatt-hour (kWh) over the reference fuel cost of Rs8.4315/kWh.

Total electricity generation in May stood at 12,638 GWh, at an average fuel cost of Rs9.0857/kWh. After adjustments for transmission losses and other corrections, net electricity delivered to distribution companies stood at 12,335 GWh, at a cost of Rs9.2488/kWh. Hydropower remained the backbone of electricity generation in May, producing more than one-third of the country’s total power, according to official data. It was followed by nuclear energy, which contributed around 14.25%, while imported coal accounted for 13.54% of generation. Other sources included regasified liquefied natural gas (RLNG) at 11.81% and locally produced coal at 11.66%.