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Pakistan electricity tariff may rise by PKR 1.72 under April fuel cost adjustment

NEPRA will hold a public hearing on June 2 to discuss tariff hike

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Pakistan electricity tariff may rise by PKR 1.72 under April fuel cost adjustment

Pakistan generated 9.50 billion units of electricity in April, with an average production cost of PKR 9.42 per unit

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Power consumers across Pakistan, including K-Electric customers, are likely to face an increase of PKR 1.72 per unit in electricity tariffs under the monthly fuel cost adjustment (FCA) for April.

The Central Power Purchasing Agency (CPPA) has requested the hike from the National Electric Power Regulatory Authority (NEPRA).

The adjustment reflects fuel costs incurred during April. It would likely appear in consumers' June electricity bills, adding to pressure on households and businesses already facing elevated energy costs.

Why is Pakistan raising electricity tariffs?

Pakistan generated 9.50 billion units of electricity in April, according to CPPA data. The average production cost stood at PKR 9.42 per unit.

Around 9.295 billion units were supplied to power distribution companies during the month. The FCA mechanism passes monthly changes in fuel costs on to consumers.

What was Pakistan's electricity generation mix in April?

Nuclear energy was the largest contributor to the energy mix in April at 22.07%. Hydropower followed closely at 21.89% of total electricity generation.

Electricity generated from local coal contributed 15.61% to the mix, while imported coal accounted for 14.14%. Power generation from local gas stood at 10.19%.

Furnace oil contributed 5.11% and imported liquefied natural gas (LNG) accounted for 4% of total generation. Diesel-based generation remained limited at 0.49%.

When will NEPRA decide on the tariff hike?

NEPRA is scheduled to hold a public hearing on June 2 to consider the CPPA petition. The adjustment will become final only after the regulator's review and approval.

If approved, the fuel adjustment surcharge would apply to consumers nationwide. It would add further pressure on households and businesses already facing elevated energy costs.

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