On May 5, 2026, the National Electric Power Regulatory Authority (NEPRA) approved a negative fuel charges adjustment of Rs0.0102 per kilowatt-hour for March 2026. This decision provides marginal relief to electricity consumers in Pakistan amidst rising generation costs.
Before this shift, expectations were grim as electricity tariffs continued to rise. The cost of electricity generation was increasing, driven by higher fuel prices and demand fluctuations.
The approval marked a decisive change. Electricity generation during March 2026 increased by 6.38 percent compared to reference assumptions. Hydel power generation rose significantly, exceeding 62 percent, reaching 2,105 GWh. In contrast, electricity generation from RLNG-fired power plants dropped by 67 percent to just 504 GWh.
Key statistics:
- Negative fuel charges adjustment: Rs0.0102 per kilowatt-hour
- Percentage increase in electricity generation: 6.38%
- Hydel power generation: 2,105 GWh
- Drop in RLNG-fired power plants: 67%
- Average fuel cost per unit: Rs8.0783
This adjustment comes alongside broader changes in the power sector. The federal government has approved a reform package aimed at eliminating regional disparities in electricity charges. Electricity network usage and transmission charges will now be applied uniformly across all distribution companies.
The Economic Coordination Committee (ECC) also approved measures to improve efficiency in the power sector and strengthen market-based electricity trading mechanisms. These reforms are crucial as the country moves towards a more equitable electricity tariff system.
Experts believe these changes may help stabilize the power sector and provide consumers with some relief from escalating costs. However, uncertainties remain regarding the long-term impacts of these adjustments on overall electricity pricing.