Print Print edition: 2026-04-18

Power consumers may get Rs1.14/unit relief

ISLAMABAD: Power consumers, who bear the brunt of Fuel Charges Adjustment (FCA) are likely to get a relief of around...

Published April 18, 2026 Updated April 18, 2026 09:03am

3 min

By Mushtaq Ghumman

Add BRecorder as a trusted
source on Google

ISLAMABAD: Power consumers who bear the brunt of Fuel Charges Adjustment (FCA) are likely to get a relief of around Rs1.14 per unit in their electricity bills for March 2026, to be charged in May, as the Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a relatively lower positive Fuel Charges Adjustment (FCA) of Rs0.2660 per unit.

The anticipated relief comes primarily due to a significant increase in hydropower generation, which surged by over 62 percent to 2,105 GWh in March 2026 compared to 1,297 GWh in the same month last year.

In contrast, electricity generation from RLNG-fired power plants declined sharply by 67 percent, dropping to 504 GWh from 1,528 GWh in March 2025.

According to official data, the financial impact of FCA in March 2026 stood at Rs8.2612 per unit, slightly lower than Rs8.3743 per unit recorded in February 2026, reflecting a reduction of Rs0.1131 per unit. However, on a year-on-year basis, FCA impact for March 2026 remained about Rs0.96 per unit lower compared to March 2025.

CPPA-G, in its petition submitted to the National Electric Power Regulatory Authority (NEPRA), has requested a positive adjustment of Rs0.2660 per unit under the FCA mechanism. This adjustment would translate into an additional financial burden of approximately Rs2.3 billion on consumers nationwide, mainly attributed to reduced RLNG-based generation, which is relatively expensive.

Despite this increase, consumers are expected to experience a net relief in their upcoming bills. The proposed FCA of Rs0.2660 per unit for March will replace a significantly higher FCA of Rs1.42 per unit charged in the previous month, resulting in an effective reduction of around Rs1.14 to Rs1.16 per unit.

NEPRA has scheduled a public hearing on April 28, 2026, to consider CPPA-G’s petition and determine the final FCA adjustment.

Data submitted by CPPA-G shows that hydel generation remained the largest contributor to the overall energy mix, accounting for 23.55 percent (2,105 GWh) of total electricity generation during March 2026. Nuclear power ranked second with a share of 21.95 percent (1,962 GWh), offering one of the lowest generation costs at Rs2.7836 per unit.

Coal-based generation also held a significant share in the energy mix. Electricity generated from local coal stood at 1,498 GWh (16.76 percent) at a cost of Rs11.14 per unit, while imported coal contributed 1,234 GWh (13.80 percent) at a higher cost of Rs15.2324 per unit.

Power generation from gas-fired plants reached 1,014 GWh, accounting for 11.34 percent of total generation, at a cost of Rs13.3470 per unit. Meanwhile, RLNG-based generation, despite its reduced share of 5.64 percent, remained comparatively expensive at Rs24.5559 per unit.

Electricity generation from residual fuel oil (RFO)-based plants remained minimal at 90 GWh, but at a significantly high cost of Rs36.1606 per unit.

Further analysis indicates that generation from local coal increased by 7.5 percent to 1,498 GWh in March 2026 compared to 1,393 GWh in March 2025. Similarly, electricity generation from indigenous gas rose by 3.57 percent to 1,014 GWh from 979 GWh in the corresponding period last year.

However, nuclear generation declined by 11.7 percent, falling to 1,962 GWh in March 2026 from 2,223 GWh in March 2025.

The evolving energy mix, marked by higher reliance on hydropower and reduced dependence on RLNG, has played a key role in moderating fuel costs, offering partial relief to consumers amid otherwise high electricity tariffs.

Read Comments