ISLAMABAD – Electricity consumers across Pakistan face another hit to their monthly bills as National Electric Power Regulatory Authority (NEPRA) has approved a positive Fuel Cost Adjustment (FCA) of Rs 1.1086 per unit for electricity consumed in August 2026.
The adjustment will be recovered from consumers through their October 2026 electricity bills, adding an estimated Rs 19 billion to the financial burden on electricity users nationwide. The decision means millions of consumers will once again see an additional charge appearing on their power bills—even as electricity prices have generally shown signs of easing over the past year.
The approved FCA applies to consumers of distribution companies (XWDISCOs) as well as K-Electric consumers in Karachi. However, certain categories have been exempted, including lifeline consumers, electric vehicle charging stations and prepaid tariff consumers.
The adjustment is based on the difference between the actual fuel cost of electricity generation, around Rs 8.2084 per unit, and the reference fuel cost of approximately Rs 7.0998 per unit.
Central Power Purchasing Agency-Guarantee (CPPA-G) had initially sought a significantly higher adjustment of around Rs 1.73 per unit, but NEPRA ultimately approved the lower figure of Rs 1.1086.
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The latest FCA comes against the backdrop of dramatic swings in Pakistan’s electricity prices over the last two years. In mid-2024, NEPRA approved a major increase in the average base electricity tariff of roughly Rs 5.72 per unit for FY2024-25. After government subsidies, the effective increase for some periods was lower, but consumers still faced substantial increases.
Protected household consumers were also hit hard, with rates for some lower-consumption slabs rising sharply, for example, the tariff for consumers using up to 100 units increased from around Rs 7.74 to Rs 11.69 per unit. For FY2025-26, the average uniform base tariff was reduced to approximately Rs 31.59 per unit, down from around Rs 32.73 previously. Further changes and adjustments followed during 2026.
Pakistan’s effective electricity cost, including base tariff, FCA, surcharges and taxes, reached high in recent years. By May 2026, the Power Division cited an average effective electricity price of approximately Rs 42.26 per unit, representing a reduction of around 20 percent from earlier levels.
Industrial consumers reportedly saw even larger reductions, while protected domestic consumers also benefited from substantial declines. Another comparison highlights the change: the effective average price fell from around Rs 48.70 per unit in June 2024 to Rs 39.64 by August 2025.
