Electricity Prices in Pakistan Likely to Rise Under Monthly Fuel Cost Adjustment
Electricity consumers across Pakistan may soon face higher power bills as a request has been filed with the National Electric Power Regulatory Authority (NEPRA) seeking an increase in tariffs under the monthly fuel cost adjustment (FCA) mechanism.
According to details, the petition proposes a hike of Rs. 1.78 per unit, which, if approved, will be reflected in upcoming electricity bills nationwide.
What Is the Fuel Cost Adjustment?
The monthly fuel cost adjustment allows power distribution companies to revise electricity tariffs based on fluctuations in global fuel prices and changes in the electricity generation mix. When fuel costs rise, the additional burden is passed on to consumers; when they decline, relief may be provided.
Why the Increase?
The proposed adjustment is typically linked to:
- Higher international fuel prices
- Increased reliance on expensive fuel-based power generation
- Exchange rate fluctuations impacting imported fuels
NEPRA will review the request in a public hearing before making a final determination.
Impact on Consumers
If approved, the Rs. 1.78 per unit increase could significantly affect household and commercial electricity bills, especially amid already rising living costs. Industrial users may also see higher operational expenses, potentially influencing product prices.
The final decision will depend on NEPRA’s assessment of the submitted data and public feedback.