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CPPA-G seeks fuel charges adjustment increase for electricity consumers in May 2026

The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has sought a positive Fuel Charges Adjustment (FCA) of 82 paisa per unit for May 2026, which, if approved, could increase electricity bills for consumers across the country.

The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which has scheduled a public hearing on June 30, 2026, to review the proposed adjustment.

According to the petition, CPPA-G has calculated an increase of Rs0.8173 per unit over the reference fuel cost of Rs8.4315 per kilowatt-hour. The adjustment has been sought under the monthly FCA mechanism incorporated in NEPRA’s tariff framework and governed by the provisions of the NEPRA Act.

Data submitted to the regulator shows that Pakistan generated approximately 12,638 gigawatt-hours (GWh) of electricity during May 2026 at an average fuel cost of Rs9.09 per unit. After accounting for transmission losses, system adjustments, and prior-period corrections, net electricity supplied to distribution companies stood at 12,335 GWh at a cost of Rs9.25 per unit.

Hydropower remained the largest source of electricity generation during the month, contributing more than one-third of total output. Nuclear energy was the second-largest contributor, followed by imported coal, RLNG, and local coal-fired generation.

The generation mix also included electricity produced from furnace oil, natural gas, wind, solar, and bagasse-based power plants. However, some of these sources continued to carry relatively higher generation costs compared to hydel and nuclear energy.

In line with the federal government's policy on uniform application of fuel cost adjustments, any FCA approved by NEPRA for ex-WAPDA distribution companies will also apply to consumers of K-Electric.

The regulator will hear stakeholder views during the upcoming public hearing before issuing its final determination. Any approved adjustment will subsequently be incorporated into electricity bills in accordance with the applicable tariff mechanism.

The proposed increase reflects fluctuations in fuel costs and the evolving generation mix, which continue to influence monthly electricity tariffs under Pakistan’s power pricing framework.

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