Electricity consumers across Pakistan, including those served by K-Electric, could face an additional financial burden of around Rs29.5 billion if a proposed increase in electricity tariffs is approved under the fuel adjustment mechanism for August 2026.
The National Electric Power Regulatory Authority (NEPRA) held a public hearing to examine a petition submitted by the Central Power Purchasing Agency (CPPA), which has sought an increase of Rs1.73 per unit in electricity tariffs. NEPRA reserved its decision and said a detailed ruling would be issued after reviewing the financial figures, claims and calculations presented during the hearing.
During the proceedings, CPPA officials said that Rs20.7142 billion of the requested adjustment was linked to payments made to Independent Power Producers (IPPs). Power generation during August stood at 14.464 billion units, with electricity produced at an average cost of Rs8.82 per unit, compared with the reference generation rate of Rs7.0998 per unit.
Hydropower remained the largest contributor to the electricity generation mix, accounting for 37.84% of total generation. Imported coal contributed 15.59%, while local coal accounted for 10.86%. LNG-based generation made up 8.48% and local gas contributed 7.04%.
The hearing also highlighted the high cost of LNG-based electricity generation, with the cost reaching as much as Rs45.92 per unit. Several power producers submitted adjustment claims as part of the overall fuel cost calculations.
These claims included Rs1.3246 billion for Chashma Nuclear Power Plant Unit-2 (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.
Other claims included Rs36.1 million and an additional Rs1.6 million in CV adjustments from Nishat Power Limited, 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 tariff adjustment is now awaiting NEPRA’s final decision. If approved, the increase could raise electricity costs for consumers and add further pressure to household and business electricity bills.
