The National Electric Power Regulatory Authority (NEPRA) held a public hearing on Tuesday regarding the monthly fuel cost adjustment (FCA) for May 2026, where it was revealed that electricity consumers are likely to face an increase of up to Rs0.82 per unit. The Central Power Purchasing Agency (CPPA) requested the tariff revision, citing actual fuel costs of Rs9.2488 per unit against the reference fuel cost of Rs8.4315 per unit, resulting in a proposed increase of Rs0.8173 per unit.
Additional Burden of Rs10 Billion
According to NEPRA officials, the proposed adjustment would impose an additional burden of approximately Rs10 billion on electricity consumers. During the hearing, officials stated that a total of 12.33 billion units of electricity were sold in May 2026. CPPA officials reported that overall electricity consumption in May declined by 4.6 per cent compared to the previous period.
Reasons for Decline in Demand
CPPA officials attributed the decline in electricity demand partly to the early closure of markets under austerity measures introduced following the Iran-US war, claiming that consumption fell by around one per cent due to these measures. NEPRA members questioned the reasons behind the decline and inquired whether it was linked to load management (load shedding). In response, CPPA officials stated that lower demand was also due to the Eid holidays and comparatively lower temperatures during May.
According to the National Power Control Centre (NPCC), maximum electricity generation during May reached 23,333MW. NEPRA also questioned why electricity demand had declined despite the government's incremental package for the agriculture and industrial sectors. CPPA officials attributed part of the decline to increased daytime solarisation, noting that demand for grid electricity had fallen as more consumers relied on solar power during daylight hours.
Impact of Iran-US War and LNG Supplies
CPPA officials informed the hearing that LNG supplies had been restored by the end of April 2026. However, they stated that the fuel cost for power generation had increased due to the Iran-US war. Peak electricity demand in June stood at 26,000MW, according to officials.
Opposition from Jamaat-e-Islami and FPCCI
Jamaat-e-Islami rejected the proposed increase during the hearing. Its representative, Imran Shahid, said, “We reject the proposed Rs0.82 per unit increase.” The intervenors argued that the public should not be made to bear the cost of poor governance. They pointed out that the low-cost Neelum-Jhelum Hydropower Project remained non-operational. They also said severe load shedding continued across the country and criticised the government for failing to develop an adequate transmission system capable of delivering cheaper electricity. Imran Shahid further stated, “The people of Karachi should not suffer because of K-Electric's inefficiency.”
Rehan Javed, representing the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), questioned why electricity demand was not increasing despite the availability of a low-cost industrial power package. He said, “Textile industries are shutting down, highlighting the worsening condition of the manufacturing sector.” He also argued that the financial burden of incremental packages should not be shifted to other categories of consumers.
