ISLAMABAD: The country’s power generation increased by 11 per cent to 7,696 GWh in February 2026, compared to 6,945 GWh in February 2025.
The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a positive adjustment of Rs 1.6406 per unit under the FCA mechanism for February 2026. The proposed adjustment would enable power distribution companies (DISCOs) and K-Electric (KE) to recover approximately Rs 12 billion from consumers.
In comparison, the FCA stood at a negative Re 0.2984 per unit in February 2025, indicating an increase of 650 per cent in financial impact year-on-year.
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National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on March 31, 2026, to examine CPPA-G’s request.
The hearing will allow consumer representatives to present their views on the proposed adjustment.
Electricity generation from hydel sources declined by 5.3 per cent to 1,783 GWh in February 2026 from 1,883 GWh in the same month last year.
Generation from gas-based power plants stood at 887 GWh (11.52 per cent of total generation) at a cost of Rs 12.7439 per unit, compared to 1,069 GWh in February 2025.
Power generation from imported coal increased significantly to 1,150 GWh (14.95 per cent of total generation) from 108 GWh in February 2025, reflecting a surge of 965 per cent. The cost of generation from imported coal was Rs 13.5605 per unit.
Electricity generation from local coal stood at 1,231 GWh (15.99 per cent of total generation) at Rs 12.2193 per unit, compared to 1,043 GWh in February 2025.
No electricity was generated from RFO and HSD during the period.
Generation from RLNG declined by 25.6 per cent to 729 GWh (9.47 per cent of total generation) at a cost of Rs 20.1613 per unit, compared to 980 GWh in February 2025.
Electricity generation from nuclear sources decreased by 21 per cent to 1,449 GWh (18.83 per cent of total generation) at a cost of Rs 2.5042 per unit, compared to 1,845 GWh in the same month last year.
Electricity imports from Iran increased to 35 GWh at a cost of Rs 23.2107 per unit, compared to 30 GWh in February 2025.
Total electricity generation in February 2026 stood at 7,696 GWh at an average cost of Rs 8.1543 per unit.
CPPA-G has also sought a prior period adjustment of Rs 694 million. Sales to IPPs were recorded at negative 24 GWh at Rs 51.9007 per unit, while transmission losses stood at 244 GWh (3.18 per cent).
Net electricity delivered to DISCOs was 7,427 GWh at an average cost of Rs 8.3743 per unit.
According to CPPA-G, the reference fuel cost for February was Rs 6.7337 per unit against the actual cost of Rs 8.3743 per unit, justifying a positive adjustment of Rs 1.6406 per unit.
However, since Nepra had already approved an FCA of Rs 1.6274 per unit for January 2026 (charged in March), which will now be replaced with Rs 1.6406 per unit, the overall tariff impact is expected to remain largely neutral.
Independent System and Market Operator has certified that Economic Merit Order (EMO was followed as defined under Section 2 of the Nepra Licensing (Generation) Rules 2000, while operating power plants in its fleet during the month of February-2026.
However, violations, if any, in Economic Merit Order were purely due to System constraints. Partial loading of power plants was strictly in accordance with the provision of their respective Power Purchase Agreement (PPA) and the plants were operated on partial load as per system load demand variations and for fuel conservation where needed.
Copyright Business Recorder, 2026
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