ISLAMABAD: Power distribution companies (Discos) have sought approval to recover an additional Rs4 billion from electricity consumers through higher fuel cost charges for December consumption, despite a significant share of power generation coming from cheaper domestic sources.
According to officials, the Central Power Purchasing Agency (CPPA) has requested a 48-paisa per unit increase in fuel cost adjustment (FCA), which, if approved, will be charged to consumers in February electricity bills across the country, including those served by ex-Wapda Discos and K-Electric. The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on January 29 to review the petition.
The request comes days after the government decided not to pass on a 62-paisa per unit reduction in the national average base tariff for the current fiscal year, which had been determined by Nepra. The authorities said the potential relief was absorbed due to the growing number of highly subsidised “protected” consumers, whose count has increased to about 22 million from around 9.5 million three years ago, along with a sharp rise in their electricity consumption.
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According to sector data, more than 72 per cent of electricity generation in December came from domestic fuel sources, many of which are considered low-cost or near zero-cost, including hydropower and nuclear energy. Despite this, Discos have sought an upward adjustment, citing higher overall fuel costs incurred during the month.
In its petition, the CPPA stated that electricity consumption in December was around nine per cent higher compared to the same month last year, although it remained about 15 per cent lower than consumption recorded in November 2025. The agency attributed the proposed adjustment to variations in fuel mix, operational constraints, and changes in demand patterns during the winter season.
Fuel cost adjustments are routinely used to reflect monthly changes in generation costs and are passed on to consumers after regulatory scrutiny. However, the latest request has drawn attention due to the increased reliance on relatively cheaper generation sources during the period under review.
Nepra has called a public hearing on Jan 29 to examine the request for fuel cost adjustment.https://t.co/4j0i5HQ8i7
— Dawn Business (@dawn_business) January 17, 2026
If approved by Nepra, the additional FCA would apply uniformly to consumers nationwide, further adding to electricity bills at a time when households and businesses are already grappling with high energy costs.
Nepra officials said the upcoming public hearing would examine the justification for the proposed increase, including the actual fuel mix, generation costs, and compliance with regulatory benchmarks, before a final determination is made.
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