The officials say actual fuel cost for electricity generation stood at Rs9.2488 per unit, compared with the reference fuel cost of Rs8.4315 per unit, resulting in the proposed increase
ISLAMABAD: (UrduPoint/Pakistan Point News-July 1st, 2026) Electricity consumers across Pakistan are likely to face an increase of Rs0.8173 per unit in power tariffs under the monthly Fuel Cost Adjustment (FCA) for May 2026, following a public hearing held by the **National Electric Power Regulatory Authority> (NEPRA) on Tuesday.
During the hearing, the officials said the actual fuel cost for electricity generation stood at Rs9.2488 per unit, compared with the reference fuel cost of Rs8.4315 per unit, resulting in the proposed increase.
The request for the adjustment was submitted by the Central Power Purchasing Agency (CPPA).
Officials informed the hearing that if approved, the adjustment would place an additional financial burden of around Rs10 billion on consumers. They added that 12.33 billion units of electricity were sold during May.
CPPA officials said electricity consumption declined by 4.6 percent during the month. They attributed the decrease to several factors, including the Eid holidays, comparatively mild weather, increased reliance on solar energy during daylight hours, and the early closure of markets under energy conservation measures introduced during the Iran-US conflict.
Members of NEPRA questioned whether the decline in electricity demand was linked to load management or power outages. In response, CPPA officials maintained that reduced demand was primarily the result of seasonal and operational factors rather than load shedding.
According to the National Power Control Centre (NPCC), the country's maximum electricity generation reached 23,333 megawatts during May, while peak demand in June rose to 26,000 megawatts.
The regulator also sought an explanation for the decline in electricity consumption despite the government's incentive packages for the agriculture and industrial sectors. CPPA officials said growing solarisation had significantly reduced dependence on the national grid during daytime hours.
They further stated that liquefied natural gas (LNG) supplies were fully restored by the end of April but noted that fuel costs for power generation had increased because of regional geopolitical tensions.
During the hearing, representatives of Jamaat-e-Islami opposed the proposed tariff increase, arguing that consumers should not bear the cost of inefficiencies in the power sector. They also criticised the continued shutdown of the Neelum-Jhelum Hydropower Project, ongoing load shedding in various parts of the country, and shortcomings in the electricity transmission system.
A representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) questioned why electricity demand had not increased despite concessional power packages for industries. He said the closure of textile units reflected the manufacturing sector's deteriorating condition and urged that the cost of incentive packages should not be passed on to other consumer categories.
NEPRA is expected to announce its decision on the proposed fuel cost adjustment after completing its review of the submissions made during the hearing.
