Uniform Tax on Net Metering Bills

Consumers To Face Rs1.20 Per Unit Increase In Electricity Rates

In yet another blow to inflation-weary power consumers, the consumers are likely to face electricity tariff increase by Rs 1.20 per kilowatt-hour (kWh) on account of fuel adjustment for June 2026.

The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on Tuesday to consider the fuel price adjustment for June. 

During the proceedings, officials revealed that the Central Power Purchasing Agency (CPPA) has filed a petition calling for a hike of Rs 1.20 per unit in electricity tariffs. 

According to the CPPA Managing Director, 13.07 billion units of electricity were sold in June. It was further informed that the reference fuel cost  was estimated at Rs 7.71 but the actual cost jumped up to Rs 8.91 per unit, due mainly to the high cost of imported LNG used for power generation.

During the hearing, NEPRA Member Maqsood Anwar expressed strong dissatisfaction with the authorities’ explanations. He called for action rather than mere verbal statements. He urged the relevant officials to implement practical measures aimed at ensuring the generation and transmission of cheaper electricity to consumers.

According to tariff proposal data submitted to the National Electric Power Regulatory Authority (NEPRA), power consumers had paid an FCA of Rs0.34/kWh in July 2026. 

However, for August 2026, the proposed FCA had escalated to Rs1.20/kWh, which resulted in a net additional burden of Rs0.86/kWh on general consumers.

The proposed tariff hike comes against the backdrop of extreme volatility in fuel rates, particularly Regasified Liquefied Natural Gas (RLNG). 

Data on energy generation trends reveals that RLNG prices had witnessed a dramatic surge, rising from a low of Rs1,546 per MMBTU in April 2026 to Rs4,357 per MMBTU in May 2026. It went up to Rs4,997 per MMBTU in June 2026.

Alongside rising generation costs, data submitted by CPPAG revealed a notable contraction in overall electricity consumption across the country.

 Total power demand dropped by 3.3% year-on-year, which declined from 10,337 Gigawatt-hours (GWh) in June 2025 to 9,995 GWh in June 2026.

The sharpest decline in consumption was noted in the agricultural sector.  Unit growth plummeted by 28.9%, falling from 388 GWh in June 2025 to 276 GWh in June 2026. 

Bulk supply category power usage also dropped significantly by 11.5% to 286 GWh. The domestic consumption also contracted by 3.5% to 5,799 GWh from 6,007 GWh recorded in the same month of the previous year.

Similar Posts