The National Electric Power Regulatory Authority (NEPRA) has permitted state-owned power distribution companies (Discos) and K-Electric to charge consumers an extra Re0.336 per unit on account of monthly fuel charges adjustment (FCA) for May 2026. This decision came after the Central Power Purchasing Agency (CPPA-G) filed a petition on behalf of the Discos, requesting a higher adjustment of Re0.8173 per unit.
Actual Fuel Cost Exceeds Reference Benchmark
According to the CPPA-G's petition, consumers were billed based on a reference fuel cost of Rs8.4315 per unit in May 2026. However, the actual fuel cost incurred by the power generation companies turned out to be Rs9.2488 per unit. The CPPA-G urged NEPRA to allow Discos to recover the difference of Re0.8173 per unit from consumers. After conducting a hearing and reviewing the submitted data, NEPRA approved a positive FCA of Re0.336 per unit.
This additional amount will be reflected in the electricity bills for July 2026. It applies to all consumer categories of Discos and K-Electric, except lifeline consumers, Electric Vehicle Charging Stations (EVCS), and pre-paid electricity consumers who have opted for the pre-paid tariff. The adjustment also applies to consumption under the Incremental Consumption Package.
Power Generation Mix and Costs in May 2026
Data submitted to NEPRA reveals that total power generation in May 2026 reached 12,638 GWh at a total cost of Rs114.827 billion, translating to an average cost of Rs9.0857 per unit. After accounting for transmission losses and prior adjustments, the net electricity delivered to distributors cost Rs9.2488 per unit for 12,335 GWh supplied.
The generation mix in May 2026 was dominated by hydel power, which contributed 33% of total generation. Coal-fired plants accounted for 25%, nuclear 14.25%, RLNG 11.81%, and gas 8.31%. Notably, hydel generation more than doubled from 2,079 GWh in April 2026 to 4,205 GWh in May 2026.
Cost of Generation by Fuel Type
Expensive electricity from residual fuel oil (RFO) based plants amounted to 20 GWh at a cost of Rs42.1809 per unit. Electricity imported from Iran totaled 32 GWh at Rs31.9341 per unit, while RLNG-based generation reached 1,493 GWh at Rs30.6457 per unit. Local coal-fired plants generated 1,474 GWh at Rs11.1849 per unit, up from Rs10.9306 per unit in April 2026. Imported coal-based generation stood at 1,343 GWh at Rs17.6091 per unit, compared to 1,712 GWh at Rs16.6062 per unit in April 2026.
Gas-based power plants produced 1,050 GWh, nuclear plants contributed 1,801 GWh at a low cost of Rs2.77015 per unit, bagasse generated 63 GWh at Rs10.992 per unit, wind contributed 665 GWh, and solar added 119 GWh.
