The government is in talks with LNG terminal operators to defer or stagger capacity charges for idle facilities in April, officials told NEPRA on Tuesday. This was revealed by an official of the Power Division during the public hearing by NEPRA on the petition of the Central Power Purchasing Agency (CPPA-G), which sought charging an additional per unit amount from consumers.
A petition filed by CPPA-G with NEPRA, on behalf of Distribution Companies (Discos), stated that consumers were billed at a reference fuel cost of Rs8.2498 per unit in April, but the actual cost turned out to be Rs9.9748 per unit. CPPA-G requested the regulator to allow Discos to recover Rs1.7251 per unit from consumers on account of monthly fuel charges adjustments for April 2026.
Electricity prices are likely to rise by Rs1.73 per unit under the monthly fuel cost adjustment (FCA) for April, officials indicated during a hearing at the National Electric Power Regulatory Authority, as the power sector grapples with shifting demand patterns, fuel supply disruptions, and rising generation costs. CPPA estimated that, if approved, the fuel cost adjustment would burden consumers with an additional Rs16 billion in April.
CPPA told the regulator that April saw unusual conditions, including the impact of regional tensions on fuel supply chains and a complete absence of imported LNG during the month. Officials said LNG cargoes arrived later in May under both contract and spot arrangements, allowing gas-based power plants to resume operations.
It was informed that electricity demand declined across most consumer categories in April, except industry, which increased by 13.5 percent. Agricultural consumption fell sharply by 53 percent, while domestic demand dropped 14.6 percent, commercial demand declined 9.5 percent, and general services usage fell 7.2 percent. During the month, bulk power consumption also decreased by 12.7 percent.
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 adjustments are 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 amid complaints of prolonged and unannounced loadshedding during extreme heat. The regulator took notice of the situation and sought a detailed report from K-Electric regarding hours-long outages and failure to adhere to loadshedding 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 also raised concerns 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 outages must be resolved on an urgent basis.
When asked about the capacity charges of the LNG terminals, the official said that the LNG tariff is determined by the Oil and Gas Regulatory Authority. However, the issue was raised at different forums, and negotiations with LNG terminal operators to defer or stagger capacity charges levied even when the facilities remain idle are continuing. In April, Pakistan imported no LNG due to a force majeure by Qatar because of the US-Israel-Iran war, leaving both LNG terminals unused. The official said that any concession secured from the terminal operators would be passed on to consumers through lower electricity costs.
