Power bills to rise by Rs2.56 a unit in November after fuel cost surge

By Staff Reporter

ISLAMABAD: Electricity consumers will face an increase of Rs2.56 per unit in their November bills, the government has said, while claiming the rise would have been far steeper without targeted load shedding.

The Power Division on Thursday projected the increase as a fuel cost adjustment (FCA) for September, when expensive fuels were used to generate electricity. The charge is expected to bring in about Rs32.7bn.

In a statement, the division said it had “averted a potential Rs5-6 per unit hike” through timely measures. It said load management lasting roughly two to two-and-a-half hours during September cut reliance on furnace oil and high-speed diesel, and had saved consumers up to Rs3.44 per unit.

The September adjustment is Rs1.45 per unit higher than August’s Rs1.11. The division said supplying imported re-gasified liquefied natural gas (RLNG) to power plants at domestic gas prices had trimmed a further 83 paisa per unit from the burden.

It blamed the rise on a sharp increase in international fuel prices following the conflict in the Middle East and the closure of the Strait of Hormuz, which has disrupted fuel supply chains. Qatar has declared force majeure, but the division said Pakistan was still meeting its RLNG needs through contracted supplies and, where necessary, additional spot cargoes.

The division said fuel and quarterly tariff adjustments between January and August had added only 65 paisa per unit, or 1.9 per cent, to the base tariff. It credited tariff rationalisation and an additional consumption package for industrial and agricultural users, which it said encouraged greater use of the national grid.

The September figure is a projection, and earlier adjustments have shifted after review. The National Electric Power Regulatory Authority (Nepra) approved Rs1.11 per unit for August, adding about Rs16bn to October bills. The Central Power Purchasing Agency had sought Rs1.73.

Industrial consumers dispute the claimed benefits of the support package. They say its Rs22.98 per unit marginal rate helps only a select few. They put the true marginal cost at about Rs34 per unit, with around Rs11 of that feeding into the average tariff paid by every consumer.

Nepra held a public hearing on 5 October on whether the package should be revised or suspended, and a decision is awaited. The Power Division itself has sought a review, arguing that the rate is under pressure from rising costs, and has put the loss-adjusted weighted average marginal cost at Rs31.83 per unit. The regulator has also asked whether any upward revision should apply from the June 2026 billing month, October 2026 or a later date.

The Power Division said it was monitoring international fuel markets and supply chains and taking steps to limit the effect of external price shocks on consumers.