DISCOs seek Rs1.7 raise in power tariff

Proposed hike attributed to fuel charges adjustment

ISLAMABAD:

Power distribution companies (DISCOs) have sought approval from the National Electric Power Regulatory Authority (Nepra) to charge consumers an additional Rs1.7267 per unit in their October bills.

This proposed hike is attributed to the fuel charges adjustment (FCA) for August.

Following July's FCA, Nepra authorized DISCOs to collect an additional Rs2.058 per unit, which consumers are currently paying in their September bills.

Nepra has scheduled a public hearing on September 29 to review this petition submitted by the Central Power Purchasing Agency (CCPA) on behalf of DISCOs.

Of the total demand, these companies also agree to forego and refund Rs10.097 billion as previous adjustments and another Rs10.617 billion as RLNG fuel rate adjustment.

The power generation in August 2026 increased by 5.1%, while its cost increased by a whopping 37.63% when compared with the cost in August 2025.

The major contributor was the 111% increase in RLNG-based power, followed by a 43.3% increase in nuclear power cost and a 21.4% increase in imported coal-based power generation price.

The CPPA's petition indicates that a total of 14,943 gigawatt-hours (GWh) of electricity was generated in August 2026, with an associated cost of Rs149.596 billion—equivalent to Rs10 per unit.

Hydel generation stood at 5,654 GWh, making up 37.84% of the total generation pie. This was followed by imported coal-power generation of 2,330 GWh costing Rs17.088/unit.

Local coal-power generation increased by 12.76% to 1,626 GWh from 1,442 GWh in August last year. Interestingly, local coal generation cost decreased by 54.3% to Rs5.495/unit from Rs12.0146/unit last year.

Generation from nuclear sources stood at 1,528 GWh, which is 28.76% less than August 2025's generation of 2,145 GWh. During the month, the generation cost from nuclear sources climbed to Rs3.1468/unit from Rs2.195/unit in the same month last year depicting a 43.3% increase.

RLNG-based generation in August 2026 stood at 1,311 GWh. It declined by 39.86% from 2,180 GWh in August 2025. The RLNG per unit generation cost was Rs45.928/unit, while last year in the same month its cost was Rs21.73/unit.

Interestingly, during the month under review, 80 GWh of power was generated from expensive high-speed diesel at Rs54/unit and another 321 GWh was generated from RFO at Rs45.25/unit.

The petition outlines that in August, the consumers were charged a reference fuel cost of Rs7.1 per unit, while the actual fuel cost incurred was Rs8.8 per unit. The CPPA argues that the additional cost burden of Rs1.7 per unit should be transferred to consumers.

In Pakistan, the FCA is a regulatory mechanism administered by Nepra to pass month-to-month variations in fuel expenses directly to electricity consumers. At the start of each fiscal year, Nepra establishes a baseline reference fuel cost per unit (kWh) based on projected generation costs. Power in Pakistan is generated through a diverse mix of energy sources, including hydel, local and imported coal, RLNG, nuclear, furnace oil, solar, and wind. Because the actual cost of these fuels changes continually, the CPPA and DISCOs submit their actual monthly fuel spending to NEPRA for formal audit and public review.