CPPA seeks Rs1.73 per unit increase; NEPRA to examine August power purchase costs as consumers face another tariff adjustment
ISLAMABAD: Electricity consumers may face another increase in power tariffs as the Central Power Purchasing Agency-Guarantee (CPPA-G) has sought an increase of Rs1.73 per unit under the monthly fuel charges adjustment (FCA) for August 2026.
The request has been submitted to the National Electric Power Regulatory Authority (NEPRA), which is examining the August fuel cost adjustment request for electricity supplied to the ex-WAPDA distribution companies. NEPRA has scheduled a hearing on the matter.
According to the CPPA-G data submitted for the adjustment, the distribution companies received around 14.46 billion units of electricity during August, while the reported cost of electricity supplied to the Discos was around Rs8.82 per unit.
The proposed adjustment, if approved by NEPRA, would be recovered from consumers through their electricity bills under the applicable fuel adjustment mechanism.
The proposed increase comes at a time when electricity consumers are already facing multiple tariff components and periodic adjustments in their monthly bills. The FCA is intended to account for variations between the reference fuel cost used in tariffs and the actual cost incurred during a particular month.
### **Hydropower provided largest share**
The CPPA-G data showed that hydropower remained the largest source of electricity generation during the period under review, accounting for 37.84 percent of the generation mix.
Local coal contributed 10.88 percent, while imported coal accounted for 15.59 percent of electricity generation during August.
Electricity generated from furnace oil accounted for 2.15 percent of the generation mix, while local gas contributed 7.04 percent.
Imported liquefied natural gas (RLNG/LNG) contributed 8.48 percent of the generation mix during the month.
The generation mix is significant for the FCA because changes in the share of different fuels can affect the overall power purchase cost. Generation from relatively lower-cost sources can reduce the average cost, while dependence on more expensive imported or thermal fuels can increase the cost of electricity purchased by the power sector.
Impact on consumers
If NEPRA approves the full Rs1.73 per unit increase sought by CPPA-G, consumers covered by the applicable FCA mechanism would see the adjustment reflected in their electricity bills.
The actual financial impact on individual consumers would vary according to electricity consumption and applicable tariff categories. A consumer using more electricity would face a larger additional amount when the adjustment is recovered on a per-unit basis.
The proposed adjustment also comes amid continuing efforts to reduce the cost of electricity generation and improve the efficiency of the power sector. NEPRA’s own sector analysis has previously highlighted high power purchase costs as a major factor behind elevated electricity tariffs.
The authority will review the CPPA-G data, generation mix and other relevant factors before determining the final adjustment. Therefore, the Rs1.73 per unit figure is currently a **request by CPPA-G and not an approved increase**.
The final impact on consumers will depend on NEPRA’s determination following the hearing and the subsequent notification of the approved adjustment.