NEPRA approves Rs10.55 billion fuel adjustment for February, adding to consumers’ already heavy electricity cost burden
Key Takeaways
- Fresh bill burden: NEPRA has approved a Rs1.42 per unit FCA for February 2026, which will be reflected in April electricity bills for consumers of DISCOs and K-Electric across Pakistan.
- Rs10.55 billion recovery: The adjustment allows power companies to collectively recover over Rs10.55 billion from consumers, excluding taxes — on top of an Rs1.63/unit hike already applied in January.
- Costly fuel mix to blame: A sharp drop in cheap hydel and nuclear generation, combined with a near-tenfold jump in imported coal usage, drove up the average generation cost and triggered the adjustment.
Islamabad, Pakistan — The National Electric Power Regulatory Authority (NEPRA) has officially notified a positive Fuel Charges Adjustment (FCA) of Rs1.42 per unit for the month of February 2026, dealing yet another blow to electricity consumers already struggling under the weight of persistently high power bills.
According to NEPRA’s official decision, the regulator has approved the FCA for both distribution companies (DISCOs) and K-Electric, enabling them to collectively recover around Rs10.55 billion from consumers through upcoming electricity bills, exclusive of applicable taxes.
The adjustment reflects a straightforward but painful gap between reference and actual fuel costs. The actual national average uniform Fuel Charges Component for February clocked in at Rs8.1573 per kWh against the reference rate of Rs6.7337 per kWh — a difference of Rs1.4235 per unit now being passed on to consumers.
Unless Pakistan’s energy mix shifts meaningfully toward affordable, indigenous, or renewable sources, monthly fuel charge shocks will remain an unwelcome fixture of household and business life.
For most Pakistani households and businesses, the charge will appear as a separate line item on their April 2026 electricity bills. The adjustment applies to all consumer categories of DISCOs and K-Electric, with exemptions for lifeline consumers, Electric Vehicle Charging Stations (EVCS), and prepaid consumers who have opted for prepaid tariffs.
It is worth noting that the Central Power Purchasing Agency (CPPA-G) had originally sought a higher adjustment of Rs1.64 per unit. Following a public hearing held on March 31, 2026 — attended by officials of CPPA-G, the Power Planning and Monitoring Company, and the Independent System and Market Operator — NEPRA trimmed the approved figure to Rs1.42 per unit.
A closer look at February’s generation data explains why costs climbed. Electricity from hydel sources — one of Pakistan’s cheapest inputs — declined 5.3 percent year-on-year to 1,783 GWh. To fill the gap, the system leaned heavily on costlier fuels. Generation from imported coal surged by a remarkable 965 percent to 1,150 GWh, up from just 108 GWh in February 2025. RLNG-based generation, though lower in volume, remained the most expensive source at Rs20.16 per unit. Nuclear power — among the cheapest at just Rs2.50 per unit — also declined by 21 percent to 1,449 GWh. The reduced share of low-cost hydro and nuclear generation, combined with heavy reliance on imported fuels, directly pushed up the average generation cost to Rs8.15 per unit for the month.
The actual national average uniform Fuel Charges Component for February clocked in at Rs8.1573 per kWh against the reference rate of Rs6.7337 per kWh
This hike does not stand alone. NEPRA had approved a Rs1.63 per unit FCA for January 2026, meaning consumers are absorbing consecutive monthly surcharges with little breathing room. Industry representatives at the March 31 hearing warned that if fuel adjustments continue at this trajectory, factory closures could become inevitable — a scenario that would add further strain to Pakistan’s employment and export outlook.
For ordinary Pakistanis already squeezed by inflation and elevated base tariffs, the recurring FCA cycle points to a deeper structural problem. Unless Pakistan’s energy mix shifts meaningfully toward affordable, indigenous, or renewable sources, monthly fuel charge shocks will remain an unwelcome fixture of household and business life.
