Ex-WAPDA power distribution companies (Discos) have petitioned the National Electric Power Regulatory Authority (NEPRA) for approval to increase electricity tariff by Rs1.7251 per unit, primarily due to an 11.5% rise in fuel costs and a 9.7% drop in generation on a year-on-year basis, attributed to fuel charges adjustment (FCA).
Petition Details
The Central Power Purchasing Agency (CPPA-G) filed the petition on behalf of Discos, stating that consumers were billed at a reference fuel cost of Rs8.2498 per unit in April, but the actual cost surged to Rs9.9748 per unit. The CPPA-G has requested the regulator to allow Discos to recover the difference of Rs1.7251 per unit from consumers as monthly fuel charges adjustments for April 2026.
Fuel Cost Analysis
In April, the fuel cost escalated to Rs9.9748 per unit, marking a 20.7% month-on-month increase from Rs8.2612 per unit in March and an 11.5% year-on-year rise from Rs8.9488 per unit in April 2025. The surge was primarily driven by higher per-unit costs from residual furnace oil (RFO)-based generation, coupled with reduced hydel and LNG generation.
Generation and Cost Data
According to data submitted to NEPRA, total power generation in April reached 9,499 gigawatt-hours (GWh) at a cost of Rs89.510 billion, or Rs9.4233 per unit. After accounting for transmission losses and prior adjustments, net electricity delivered to distributors cost Rs9.9748 per unit, with 9,295 GWh supplied.
Total power generation in April 2026 stood at 9,498 GWh, which was 9.7% lower compared to the same period last year, reflecting a cyclical slowdown in economic activity. On a monthly basis, generation increased by 6% from 8,939 GWh recorded in March 2026, due to seasonal demand rise amid higher temperatures.
Cumulative Generation
On a cumulative basis, total electricity generation reached 102,628 GWh, recording a 2% increase year-on-year compared to 100,660 GWh in the same period last year.
Generation Mix
The generation mix remained dominated by coal (30%), gas (10%), and RLNG (4%), alongside nuclear (22%) and hydel (22%). Notably, expensive electricity from RFO-based plants amounted to 486 GWh at Rs45.3348 per unit, while 47 GWh was generated from high-speed diesel at Rs33.2409 per unit, and 32 GWh was imported from Iran at Rs31.7150 per unit during April.
Hydel and Coal Generation
Hydel generation declined by 10% year-on-year to 2,079 GWh in April 2026 from 2,306 GWh in April 2025. Power generation from local coal-fired power plants decreased by 2.92% to 1,482 GWh year-on-year from 1,525 GWh. Local coal plants contributed 15.61% of total generation at Rs10.9306 per unit, compared to 14.51% in April 2025. Generation from imported coal was 1,343 GWh at Rs17.6091 per unit (14.14% share), against 1,054 GWh at Rs16.6062 per unit (10.02% share) in April 2025.
Gas and RLNG Generation
Electricity generation from gas-based plants was 968 GWh (10.19% share) at Rs13.8204 per unit, compared to 842 GWh (8.01% share) at Rs11.8166 per unit in the same month last year. RLNG-based generation fell sharply by 82% year-on-year to 380 GWh (4% share) in April 2026 from 2,157 GWh (20.52% share) in April 2025.
Nuclear and Renewable Generation
Nuclear-based electricity contributed 2,097 GWh (22.07% share) at Rs2.7554 per unit, against 1,882 GWh at Rs2.1038 per unit (17.91% share) in the same period last year. Power generation from bagasse was recorded at 64 GWh at Rs10.5032 per unit, compared to 37 GWh at Rs5.9822 per unit in April 2025. Wind energy generated 409 GWh against 478 GWh in April 2025, while solar contributed 111 GWh against 115 GWh during the same period last year.
Public Hearing
NEPRA has scheduled a public hearing for June 2, 2026, to consider the proposed FCA adjustment.
