Rs1.73-per-unit tariff hike sought

Fuel supply delays, high costs impact power sector; ministry claims 20 paisa relief in June

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ISLAMABAD:

Electricity prices in Pakistan are likely to rise by Rs1.73 per unit under the monthly fuel cost adjustment (FCA) for April, say officials, as the power sector grapples with shifting demand patterns, fuel supply disruptions and rising generation costs.

At a public hearing at the National Electric Power Regulatory Authority (Nepra), the Central Power Purchasing Agency-Guarantee (CPPA-G) told the regulator that April saw unusual conditions, including the impact of regional tensions on fuel supply chains and a complete absence of imported liquefied natural gas (LNG).

Officials pointed out that LNG cargoes arrived in May under both contract and spot arrangements, allowing gas-based power plants to resume operations.

CPPA-G officials added that electricity demand declined across most consumer categories in April, except for the industry. Agriculture-sector consumption fell sharply by 53%, while domestic demand dropped 14.6%, commercial demand declined 9.5% and general services' consumption fell 7.2%. During the month, the bulk power consumption decreased 12.7%.

CPPA-G estimated the fuel cost adjustment impact for April at around Rs16 billion, which would be passed on to consumers, if approved.

Officials further informed the regulator that daily LNG-based power generation "has now been planned for the coming months", adding that May, June and July fuel price adjustments were not expected to bring major shocks due to improved fuel availability and better planning.

However, the hearing also highlighted serious concerns over power distribution performance, particularly in Karachi. K-Electric came under scrutiny over complaints of prolonged and unannounced load-shedding during extreme heat.

The regulator took notice of the situation and sought a detailed report from K-Electric about hours-long outages and failure to adhere to load-shedding schedules. Officials noted that multiple complaints had been received from consumers, including from business representatives, about excessive outages, delayed fault repairs and inconsistent supply.

Representatives of the Karachi Chamber of Commerce and Industry also expressed concern over the worsening situation, urging immediate action to address disruptions in the country's largest commercial hub. Nepra directed K-Electric to submit its report without delay, while reiterating that consumer complaints regarding prolonged load-shedding must be resolved on an urgent basis.

Separately, the Ministry of Energy (Power Division) on Tuesday announced that electricity consumers would receive a net relief of 20 paisa per unit during June 2026, as a negative quarterly tariff adjustment outweighed the positive monthly fuel cost adjustment.

According to an official statement, the fuel charges adjustment for April 2026 resulted in an increase of Rs1.73 per unit; however, the quarterly tariff adjustment for the first quarter (January-March) of 2026 provided a relief of Rs1.93 per unit. After adjusting both components, the consumers will benefit from a net reduction of 20 paisa per unit. Consequently, electricity prices in June 2026 will remain unchanged compared to the tariffs applicable from January to May 2026. (WITH ADDITIONAL INPUT FROM APP)