NEPRA approves Rs1.11 per unit fuel cost adjustment for October electricity bills
ISLAMABAD Ali Imran Chattha 

The National Electric Power Regulatory Authority (NEPRA) has notified a fuel cost adjustment of Rs1.1086 per unit for electricity consumed in August 2026, with the additional amount to be reflected in eligible consumers’ October electricity bills.
The adjustment is expected to place an additional financial burden of around Rs16 billion on electricity consumers. NEPRA, however, approved a lower adjustment than the Rs1.73 per unit initially sought by the Central Power Purchasing Agency-Guarantee (CPPA-G). (Dawn)
According to NEPRA’s decision, the actual fuel cost component of electricity generation in August stood at Rs8.2084 per unit, compared with the reference fuel cost of Rs7.0998 per unit. The difference resulted in the approved positive fuel cost adjustment of Rs1.1086 per unit. (Dawn)
The adjustment will apply to consumers of ex-WAPDA distribution companies and K-Electric. However, lifeline consumers, electric vehicle charging stations and prepaid electricity consumers who have opted for prepaid tariffs have been excluded. The adjustment will also apply to electricity consumed under the Incremental Consumption Package. (The Express Tribune)
Why did the fuel cost increase?
NEPRA’s decision comes amid changes in the power-generation mix during August. According to the regulator, expensive RLNG and imported coal-based generation accounted for a larger share of electricity production, while the availability of relatively cheaper hydropower and nuclear generation was lower than initially projected.

Hydropower’s share was below the estimated level, while nuclear generation also fell short of expectations following an outage at Karachi’s nuclear power plants. As a result, reliance on imported coal and other higher-cost sources increased. (Dawn)
The cost difference was particularly significant for RLNG-based generation, which NEPRA’s figures put at around Rs45.93 per unit, while imported coal-based generation cost about Rs17 per unit. By comparison, local coal-based generation was reported at approximately Rs5.50 per unit. (Dawn)
Impact on consumers
The Rs1.1086-per-unit adjustment is a monthly fuel cost adjustment rather than a permanent increase in the base electricity tariff. It is being recovered through October 2026 bills on electricity consumed during August.
NEPRA’s tariff mechanism allows changes in fuel costs to be passed on to consumers through monthly adjustments. Separate quarterly adjustments cover other changes in power-purchase and system-related costs. (Dawn)
Consumers whose October bills were issued before the notification may see the adjustment recovered in a subsequent billing month, according to NEPRA. (The Express Tribune)
The latest decision therefore means higher October bills for most eligible consumers, while the exemptions for lifeline and certain other categories will limit the impact on those groups.
Source: NEPRA decision; reporting by Dawn and other Pakistani news outlets. (NEPRA)