ISLAMABAD: After months of relative stability, electricity companies have sought additional fuel cost charges of more than Rs1.78 per unit from electricity consumers nationwide in March bills. It appears outcome of an increase in demand and power generation shifted back toward furnace oil.
The Central Power Purchasing Agency (CPPA) filed a petition seeking a higher fuel cost adjustment (FCA) for electricity consumed in January 2026. Although nearly 60 percent of power generation came from domestic and relatively cheaper sources, the agency reported that consumption rose by 12.1 percent compared to January last year and by about 8 percent compared to December 2025.
If approved, the surcharge will generate around Rs16 billion in extra charges for consumers of all distribution companies, including ex-Wapda Discos and K-Electric. Meanwhile, the National Electric Power Regulatory Authority (Nepra) has called a public hearing on February 26 to review the request.
According to CPPA data, 9,140 gigawatt hours (GWh) of electricity were generated in January at an estimated fuel cost of Rs106.4 billion. Of this, 8,762GWh was delivered to Discos at a cost of Rs106.7 billion, pushing the average fuel cost to Rs12.18 per unit.
Power companies said the January fuel cost exceeded the pre-approved reference rate of Rs10.395 per unit. Therefore, they requested an additional FCA of around Rs1.78 per unit.
RLNG-based power generation formed the largest share of the fuel mix at nearly 22 percent. Nuclear power followed at 17.5 percent, while hydropower dropped to 8 percent due to the annual canal closure for maintenance. Imported coal accounted for 17.28 percent, local coal 15.4 percent, and local gas 12 percent.
Furnace oil generation revived to 3 percent despite being officially phased out. It also remained the most expensive source at Rs33.55 per unit, while nuclear power stood at Rs2.23 per unit.
Renewables, including wind, solar, and bagasse, contributed 4.55 percent to the grid, while electricity imports from Iran made up 0.38 percent.
