ISLAMABAD: The country’s power generation declined by 2.5 percent in June 2026 compared to the same month last year, primarily due to disruptions in LNG supply from Qatar, which recently extended force majeure amid a war-like situation in the Middle East.
Despite the drop in generation, the average cost of electricity surged by 14 percent to Rs8.9885 per kWh in June 2026, up from Rs7.8698 per kWh in June 2025.
Hydel generation fell by 3 percent to 5,242 GWh in June 2026, accounting for 39.03 percent of total generation, compared to 5,410 GWh in June 2025. The decline is attributed to a fault at the Tarbela generation facility.
Based on the local coal, the electricity generation decreased by 10 percent to 1,358 GWh from 1,510 GWh. However, generation from imported coal rose by 21.6 percent to 1,699 GWh, up from 1,397 GWh in the corresponding month last year.
The Independent System and Market Operator (ISMO) also allowed generation from high-speed diesel (HSD) and residual fuel oil (RFO) at significantly higher costs of Rs57 per kWh and Rs52 per kWh, respectively, in June 2026. In comparison, the National Power Control Centre (NPCC) generated 151 GWh from RFO in June 2025 at Rs29 per kWh, indicating an increase of around 80 percent in RFO-based generation cost.
Generation from indigenous gas declined by 10.5 percent to 867 GWh in June 2026 at Rs13.6820 per kWh, compared to 968 GWh in June 2025.
RLNG-based generation also dropped sharply to 1,480 GWh (11.02 percent share) in June 2026 from 2,216 GWh in June 2025. Meanwhile, its cost rose to Rs35.51 per kWh from Rs21.87 per kWh, reflecting an increase of 62 percent.
In contrast, nuclear power generation recorded a significant increase of 31.5 percent, reaching 1,800 GWh (13.40 percent share) in June 2026 compared to 1,383 GWh in June 2025.
Pakistan imported 47 GWh of electricity from Iran during June 2026 for Rs27.6635 per kWh, compared to the same volume at Rs22.5155 per kWh in June 2025, marking a 23 percent increase in price.
Among renewable sources, wind power generation rose by 29.5 percent to 676 GWh from 522 GWh, while bagasse-based generation increased to 46 GWh from 35 GWh. Solar generations saw a marginal rise to 110 GWh from 106 GWh.
According to CPPA-G data, total electricity generation stood at 13,413 GWh in June 2026, down from 13,744 GWh in June 2025. Delivered energy was recorded at 13,066 GWh at an average cost of Rs8.9138 per kWh, compared to 13,310 GWh at Rs7.6800 per kWh in the corresponding month last year.
CPPA-G has sought a positive fuel cost adjustment (FCA) of Rs1.20 per kWh for June 2026, compared to Rs0.6541 per kWh in June 2025. The National Electric Power Regulatory Authority (Nepra) is scheduled to conduct a public hearing on July 29, 2026.
Copyright Business Recorder, 2026
Comments