Power consumers across Pakistan may face another hike in electricity bills, as a proposed fuel cost adjustment could increase tariffs by up to Rs0.48 per unit for December.

The Central Power Purchasing Agency (CPPA-G) has filed a petition with the National Electric Power Regulatory Authority seeking approval for a monthly fuel cost adjustment (FCA) for December 2025.

If approved, the proposed adjustment would increase electricity prices by Rs0.4781 per unit for one month, placing an additional financial burden of nearly Rs4 billion on consumers of K-Electric and distribution companies (DISCOs).

NEPRA to hear petition on Jan 29

NEPRA has scheduled a public hearing on January 29 to review CPPA-G’s request. The regulator will examine whether the increase should be passed on to electricity consumers across the country.

The adjustment stems from higher actual fuel costs compared to the reference fuel price set for December.

Electricity generation, supply figures for Dec

According to data submitted to NEPRA, total electricity generation in December 2025 stood at 8,487 gigawatt-hours (GWh). After accounting for losses, 8,208 GWh were supplied to DISCOs.

Transmission losses were recorded at 259 GWh, representing 3.05% of total electricity generated during the month.

CPPA-G stated that the reference fuel cost for December was Rs9.1419 per unit, while the actual average fuel cost rose to Rs9.6200 per unit. Based on this difference, a positive adjustment of Rs0.4781 per unit has been requested.

The total cost of net electricity delivered to DISCOs in December amounted to Rs78.957 billion.

Breakdown of power generation mix

Nuclear energy remained the largest contributor to the national grid, generating 2,126 GWh, which accounted for 25.05% of total power generation. Hydel power followed with 1,534 GWh or 18.07%.

Electricity generation from RLNG-based plants stood at 1,464 GWh (17.24%), while local coal-fired power plants produced 1,187 GWh (13.99%).

Imported coal-based generation contributed 860 GWh, making up 10.13% of total output. Gas-based power plants generated 951 GWh, or 11.20% of total electricity.

Wind energy contributed 162 GWh (1.91%), bagasse-based plants generated 97 GWh, and solar power added 74 GWh (0.87%). Electricity imports from Iran accounted for 33 GWh during the month.

Fuel costs by source

RLNG-based power generation carried the highest cost at Rs20.5457 per unit, followed by electricity imports from Iran at Rs21.9685 per unit. Imported coal-based electricity cost Rs14.3088 per unit, while gas-based generation stood at Rs13.8030 per unit.

Local coal-fired power cost Rs13.1286 per unit, whereas nuclear power remained the cheapest source at Rs2.3009 per unit.

Total cost of electricity generation

The overall fuel cost of electricity generation in December was calculated at Rs77.706 billion, with a basket price of Rs9.1558 per unit. After adding previous adjustments of Rs2.398 billion, sales of 21 GWh to independent power producers at Rs55.5585 per unit, and accounting for transmission losses, the net cost rose significantly.

As a result, electricity delivered to DISCOs averaged Rs9.62 per unit, reinforcing CPPA-G’s justification for the proposed fuel cost adjustment.

If NEPRA approves the petition, electricity consumers may see higher bills for one month, adding to existing inflationary pressures. Consumers of K-Electric and all DISCOs will bear the impact of the adjustment.

The final decision will be announced after NEPRA’s public hearing later this month.