ISLAMABAD: A potential hike in per unit price of electricity is expected across Pakistan.
According to the sources, a potential hike in electricity tariff by Rs 2.56 per unit is likely to impact consumers nationwide, including those served by K-Electric, following a formal request submitted by the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (NEPRA).
The proposed increase comes under the Monthly Fuel Cost Adjustment (FCA) for September.
According to the petition filed by CPPA, the potential hike in electricity tariff by Rs 2.56 per unit would apply for a period of one month.
NEPRA has scheduled a public hearing on October 29 to review the merit of the application and determine the final price revision.
Data submitted for September shows significant variations in power generation costs, with high-speed diesel emerging as the most expensive energy source at Rs 62 per unit, followed by furnace oil at Rs 44 per unit and imported LNG at Rs 39 per unit.
In contrast, nuclear power and hydel generation remained significantly cheaper at Rs 3 and Rs 6 per unit, respectively.
If approved by the regulatory authority, the potential hike in electricity tariff by Rs 2.56 per unit will be billed to consumers across the country in their upcoming monthly statements.
A Note on Electricity Unit Rates in Pakistan Over the Past Five Years
Over the past five years, electricity unit rates in Pakistan have experienced a steep upward trajectory, driven by currency devaluation, fluctuating global primary energy prices, capacity payment obligations, and circular debt pressures.
Between 2021 and 2026, baseline residential electricity tariffs escalated from approximately Rs 15 to Rs 18 per unit to over Rs 35 to Rs 48 per unit for mid-to-high consumption slabs, excluding taxes, surcharges, and monthly fuel cost adjustments.
The escalation in consumer tariffs has been largely driven by the structural realities of Pakistan’s power generation mix.
Heavy reliance on imported fuels—including Liquefied Natural Gas (LNG), coal, and furnace oil—exposed the power sector to global market volatility and foreign exchange risks.
Furthermore, long-term power purchase agreements involving high fixed capacity payments significantly raised the baseline bulk power price, prompting successive tariff revisions by NEPRA to maintain fiscal cost recovery.
To stabilize the power sector and meet international financial obligations, the government introduced structural tariff reforms, including quarterly tariff adjustments (QTAs) and nation-wide uniform baseline hikes.
While these adjustments reduced immediate fiscal subsidies borne by the federal budget, they resulted in a substantial rise in monthly utility expenditures for household, commercial, and industrial consumers. Although expanded solar adoption and increased hydel integration have provided seasonal cost relief, electricity unit rates in Pakistan remain a central economic challenge, shaping consumer inflation dynamics and industrial competitiveness across the nation.
ALSO READ: Electricity Prices in Pakistan Likely to Jump by Rs 2.52 Per Unit
TAGS: Potential Hike in Electricity Tariff by Rs 2.56 Per Unit, NEPRA Hearing, CPPA Petition, K-Electric Electricity Bills, Monthly Fuel Adjustment, Power Tariffs Pakistan, Pakistan Energy Sector
