Power sector seeks Rs1.73 per unit fuel adjustment for April

ISLAMABAD: Electricity consumers may face a Rs1.73 per unit increase under the monthly fuel cost adjustment for April after the Central Power Purchasing Agency-Guarantee informed the National Electric Power Regulatory Authority that power generation costs rose during a month marked by lower demand, fuel supply disruptions and the non-availability of imported liquefied natural gas.

During a public hearing, CPPA-G officials told the regulator that April brought unusual operating conditions, including the effect of regional tensions on fuel supply chains and a complete absence of imported LNG. They said LNG cargoes later arrived in May under both long-term contracts and spot arrangements, enabling gas-fired plants to return to service.

The agency said the proposed April fuel cost adjustment would have an estimated impact of about Rs16 billion, which would be passed on to consumers if approved. Officials also told Nepra that daily LNG-based generation has now been planned for the coming months and said fuel price adjustments for May, June and July were not expected to cause major shocks because of improved fuel availability and better planning.

Demand fell across most categories

According to CPPA-G, electricity consumption declined in nearly all consumer segments in April except industry. Agriculture recorded the steepest fall, with consumption down 53%. Domestic demand dropped 14.6%, commercial use fell 9.5% and general services declined 7.2%. Bulk power consumption decreased 12.7% during the month.

The hearing also brought attention to distribution-related concerns, particularly in Karachi, where K-Electric faced complaints over prolonged and unannounced load-shedding during severe heat. Nepra took notice of the matter and asked the utility to submit a detailed report on extended outages and its failure to follow load-shedding schedules.

Officials said the regulator had received multiple consumer complaints, including from business representatives, about excessive outages, delays in repairing faults and irregular power supply. Representatives of the Karachi Chamber of Commerce and Industry also raised concern over the deteriorating situation and called for urgent steps to ease disruptions in the country’s largest commercial centre.

Nepra directed K-Electric to provide its report without delay and said consumer complaints linked to prolonged load-shedding should be addressed on an urgent basis.

Power Division announces net June relief

Separately, the Ministry of Energy’s Power Division said on Tuesday that electricity consumers would get a net relief of 20 paisa per unit in June 2026 because a negative quarterly tariff adjustment more than offset the positive monthly fuel cost adjustment.

According to an official statement, the April 2026 fuel charges adjustment worked out to an increase of Rs1.73 per unit, while the quarterly tariff adjustment for January to March 2026 provided relief of Rs1.93 per unit. After combining the two components, consumers would receive a net reduction of 20 paisa per unit.

The statement said electricity prices in June 2026 would therefore remain unchanged from the tariffs that had applied from January to May 2026.