Pakistan power Sector Faces Fuel Cost Adjustment Hike
Consumers across pakistan may see a 48-paisa per unit increase in their February electricity bills due to a proposed fuel cost adjustment (FCA). The request, filed by power companies and currently under review by the National Electric Power regulatory Authority (Nepra), would result in an estimated additional charge of approximately Rs4 billion for both ex-Wapda Distribution Companies (Discos) and K-Electric.
Contradictory Tariff adjustments
This proposed increase comes despite a previously determined 62-paisa per unit reduction in the base national tariff for the current fiscal year.The government recently acknowledged that this potential saving was largely offset by increased consumption among subsidized ‘protected’ consumers. The number of these consumers has more than doubled in the past three years, rising from around 9.5 million to 22 million, with their overall electricity usage also doubling.
December Power Consumption Data
The Central Power Purchasing Agency (CPPA), which submitted the FCA petition for December consumption, reported a 9% increase in power consumption compared to December of the previous year.However, consumption was 15% lower than in November 2025.Despite over 72% of December’s power generation originating from cheaper domestic sources,including predominantly zero-cost fuels,the FCA increase is being sought.
Nepra has scheduled a public hearing on January 29th to evaluate the FCA request.
Published in Dawn, January 17th, 2026
