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Power Companies Seek New Electricity Price Hike Amid Rising Fuel Costs

In a move that could further strain household budgets, power companies have formally requested an additional increase of Rs. 1.64 per unit in electricity bills for the month of April. This request, filed under the monthly fuel cost adjustment (FCA) mechanism, follows a similar hike of Rs. 1.63 per unit already being charged to consumers during the current month.

The Central Power Purchasing Agency (CPPA) submitted the application to the National Electric Power Regulatory Authority (NEPRA), citing higher-than-expected fuel expenses for electricity generated during February. If the regulator grants approval, the move is expected to impose a collective financial burden of approximately Rs. 12.2 billion on consumers nationwide.

Data indicates a complex shift in Pakistan’s energy consumption patterns. While electricity demand in February saw a notable 11.42% increase compared to the same month last year, it actually dropped by about 15% when compared to January 2026 levels. Despite this fluctuations, the cost of generation has remained high.

Analysis shows that more than 75% of the country’s power generation currently comes from local and relatively more affordable sources. However, the average fuel cost has climbed to Rs. 8.37 per unit—significantly higher than the established reference cost of Rs. 6.74 per unit. This gap is what power companies are now seeking to recover from the public.

NEPRA has scheduled a public hearing for March 31 to scrutinize the data and hear grievances before making a final decision. Should the increase be greenlit, the additional charges will appear on April bills for a single month, as per the standard regulatory process for fuel adjustments.

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