Power Bills May Fall by Rs. 1.14 Per Unit in May

Electricity consumers in Pakistan are likely to get a relief of around Rs. 1.14 per unit in their upcoming bills for March 2026, as fuel costs decline due to a sharp drop in expensive LNG-based power generation.

According to a petition submitted by the Central Power Purchasing Agency to the National Electric Power Regulatory Authority, a Fuel Charges Adjustment (FCA) of Rs. 0.2660 per unit has been proposed for March.

Although this is a positive adjustment, it is significantly lower than the Rs. 1.42 per unit charged in the previous month, resulting in a net relief for consumers.

The key reason behind the lower cost is a major shift in the energy mix. Hydropower generation surged by over 62 percent to 2,105 GWh, becoming the largest contributor with a 23.55 percent share.

In contrast, power generation from RLNG dropped sharply by 67 percent, falling to just 504 GWh, reducing reliance on one of the most expensive fuel sources. RLNG-based electricity remains costly at around Rs. 24.55 per unit, compared to much cheaper sources like nuclear at Rs. 2.78 per unit and hydel power.

Other sources also contributed to the mix, with local coal at 1,498 GWh, imported coal at 1,234 GWh, and gas-based generation at 1,014 GWh, while RFO-based generation remained minimal but highly expensive.

Overall, the average fuel cost declined to Rs. 8.26 per unit, slightly lower than February and nearly Rs. 1 per unit cheaper compared to last year.

Despite a small additional burden of around Rs. 2.3 billion from the new FCA, consumers are still expected to see lower bills due to the comparison with last month’s higher charges. The regulator is scheduled to hold a public hearing on April 28, 2026, after which the final adjustment will be determined.