Power companies have requested a Rs1.20 per unit increase in electricity charges for August bills due to higher fuel costs. The proposed adjustment could add around Rs15.7 billion to consumers’ bills across the country. The request comes despite a major share of electricity generation coming from cheaper domestic sources.
The Central Power Purchasing Agency (CPPA) submitted the fuel cost adjustment request to the National Electric Power Regulatory Authority (Nepra). The regulator will hold a public hearing on July 29 to review the proposal. If approved, consumers of former Wapda distribution companies and K-Electric will face additional charges.
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According to the CPPA, electricity consumption in June 2026 stood at 13,066 million units, slightly lower than 13,310 million units recorded during the same month last year. The agency said the actual fuel cost reached Rs8.90 per unit against the reference cost of Rs7.714 per unit, creating the need for an additional recovery.
The increase was mainly linked to higher prices of imported fuels, particularly Regasified Liquefied Natural Gas (RLNG). RLNG-based power generation costs rose to around Rs35 per unit compared with Rs16 per unit a year earlier. Furnace oil and diesel-based generation also contributed to higher fuel expenses despite their limited share in total electricity supply.
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Meanwhile, June’s power generation relied heavily on cheaper sources, with hydropower contributing 39%, followed by nuclear energy, local coal, and local gas. Experts said international fuel price pressures and supply disruptions linked to global tensions have increased energy costs. The final decision on the proposed adjustment will be taken after Nepra’s review.