Jul power generation cost surges 38pc YoY

ISLAMABAD: The fuel cost of electricity generation increased by 38 percent year-on-year (YoY) to Rs10.8821 per unit in July 2026 from Rs7.7811 per unit in the same month of 2025, mainly due to a sharp increase in the prices of RLNG, residual fuel oil (RFO) and other fuels.

According to generation data submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G) to National Electric Power Regulatory Authority (Nepra), total electricity generation increased by seven percent to 15,122 GWh in July 2026 from 14,123 GWh in July 2025.

However, electricity delivered to consumers increased by 6 percent to 14,501 GWh from 13,666 GWh whereas prices increased by 17.5 percent to Rs9.6112 per unit from Rs8.1848 per unit.

READ MORE: Power generation drops 2.5pc in June

CPPA-G has sought a positive adjustment of Rs2.52 per unit under the monthly Fuel Charges Adjustment (FCA) mechanism for July 2026, seeking to recover an additional Rs36.54 billion from consumers of power Distribution Companies (Discos) and K-Electric.

Nepra will hold a public hearing on August 27, 2026 on CPPA-G’s request for adjustment in tariffs of Discos and K-Electric.

The data showed that hydel generation increased by 6.2 percent to 6,019 GWh in July 2026, constituting 39.81 percent of total generation, compared with 5,668 GWh in the corresponding month of 2025.

Coal-based generation increased by 9.8 percent to 1,650 GWh from 1,503 GWh. Its generation cost rose sharply to Rs16.3348 per unit from Rs11.3477 per unit.

Generation from RFO-based plants increased to 215 GWh, or 1.42 percent of total generation, from 108 GWh in July 2025. The cost of RFO-based generation increased by 61 percent to Rs50.0756 per unit from Rs31.0533 per unit.

HSD-based generation stood at 31 GWh at Rs54.4796 per unit, compared with no HSD generation in July 2025.

Gas-based generation declined by 9.4 percent to 990 GWh from 1,093 GWh, with the generation cost recorded at Rs13.7717 per unit.

RLNG-based generation witnessed a significant decline of 33.2 percent to 1,629 GWh from 2,438 GWh. Despite lower generation, the price of RLNG-based electricity more than doubled, increasing by 115 percent to Rs47.3798 per unit from Rs22.0310 per unit in July 2025.

Nuclear generation increased by 8.7 percent to 1,527 GWh from 1,405 GWh. Its generation cost increased by 25 percent to Rs3.0299 per unit from Rs2.4210 per unit. Electricity imported from Iran stood at 58 GWh at Rs26.2183 per unit, compared with 36 GWh at Rs24.1492 per unit in July 2025.

During the month, wind generation stood at 682 GWh, bagasse-based generation at 46 GWh and solar generation at 106 GWh.

The total generation of 15,122 GWh in July 2026 carried a basket price of Rs10.7495 per unit, compared with 14,123 GWh in July 2025, reflecting a seven percent increase in generation while the overall generation cost increased by 38 percent.

CPPA-G has also sought a previous negative adjustment of Rs21.720 billion, with the FCA cost calculated at Rs1.4363 per unit. The sale to IPPs was reduced by 26 GWh, having a negative value of Rs1.459 billion, while a reduction in transmission losses of 594 GWh was valued at Rs0.3784 per unit.

According to CPPA-G data, net electricity delivered to Discos in July 2026 stood at 14,501 GWh at a rate of Rs9.6112 per unit, with a total value of Rs139.370 billion.

CPPA-G, in its tariff adjustment request, maintained that the reference fuel charge for July 2026 was estimated at Rs7.0929 per unit, whereas the actual fuel charge stood at Rs9.6112 per unit. It has therefore sought an increase of Rs2.52 per unit under the FCA mechanism for July 2026.

Copyright Business Recorder, 2026