Pakistan may once again witness an increase in electricity prices, adding pressure to households and businesses already struggling with high utility bills. The expected hike comes under the monthly fuel price adjustment (FPA) system, which allows power tariffs to be revised based on fuel costs.
According to official documents, electricity prices could rise by Rs. 0.48 per unit for one month. This increase has been proposed for electricity consumed in December, and the final decision now rests with the National Electric Power Regulatory Authority (NEPRA).
Why Electricity Prices May Increase
The Central Power Purchasing Agency (CPPA) has submitted a formal request to NEPRA, asking for an adjustment in power tariffs. A public hearing on this request is expected soon.
In its petition, CPPA stated that Pakistan generated 8.487 billion units of electricity in December, while 8.208 billion units were supplied to distribution companies. The average cost of electricity during the month was recorded at Rs. 9.62 per unit.
The cost difference, mainly driven by fuel prices and the energy mix, is the key reason behind the proposed increase.
Electricity Generation Mix in December
The type of fuel used to generate electricity plays a major role in determining costs. Below is a clear breakdown of Pakistan’s power generation sources for December:
| Source of Power | Share in Total Generation |
|---|---|
| Nuclear | 25.05% |
| Hydel (Water) | 18.07% |
| Imported LNG | 17.24% |
| Local Coal | 13.99% |
| Natural Gas | 11.20% |
| Imported Coal | 10.13% |
Highlighted insight:
➡ Nuclear power remained the largest contributor, helping reduce reliance on more expensive imported fuels.
What This Means for Consumers
If NEPRA approves the CPPA request, the additional cost will be passed directly to consumers through their electricity bills for one month. While the increase may seem small per unit, it can still significantly impact monthly bills, especially for middle and low-income households.
This potential hike comes at a time when electricity tariffs are already among the highest in Pakistan’s history, raising concerns about affordability and public frustration.
Frequently Asked Questions (FAQs)
1. How much will electricity prices increase?
Electricity prices may rise by Rs. 0.48 per unit for one month.
2. Why is this increase happening?
The increase is proposed under the fuel price adjustment mechanism, which reflects changes in fuel costs used for power generation.
3. When will the final decision be made?
NEPRA will decide after holding a public hearing on the CPPA request.
4. Will this increase be permanent?
No, this adjustment is for one month only, unless future revisions are approved.
5. Who will be affected by this increase?
All electricity consumers, except those protected under specific lifeline tariffs, may feel the impact.
Conclusion
Pakistan’s power sector continues to face challenges due to fuel costs, import dependence, and structural inefficiencies. The proposed electricity price hike of Rs. 0.48 per unit may appear minor, but it reflects deeper issues in the energy system.
As NEPRA reviews the request, consumers remain hopeful for relief, transparency, and long-term solutions that can stabilize electricity prices. Until then, another increase seems likely to add to the financial strain faced by millions across the country.
Rana Shahriyar is a dedicated content writer and contributor at 8171 Rashan Program. With a strong interest in social welfare programs and government initiatives, his work focuses on delivering clear, reliable, and easy to understand information for the public.