Electricity Prices Likely to Rise in Pakistan

Electricity prices in Pakistan are expect to rise again in early 2026, as the Central Power Purchasing Agency (CPPA) has requested an increase of Rs 0.48 per unit under the monthly fuel price adjustment mechanism. This adjustment is intend to reflect changes in fuel costs and generation expenses for December 2025. If approved by the National Electric Power Regulatory Authority (NEPRA), the increase will affect household and industrial electricity bills for one month.

The proposed hike comes amid ongoing concerns about rising power costs in Pakistan. NEPRA will hold a hearing to review CPPA’s petition, ensuring transparency and allowing stakeholders to present their views. Consumers are advise to stay informed about the decision and prepare for the potential short-term increase in electricity tariffs.

Reason for the Price Hike: Fuel and Generation Costs

The electricity price increase is primarily driven by fluctuations in fuel costs and generation expenses. CPPA reported that the average cost of electricity in December 2025 reached Rs 9.62 per unit. Rising costs of imported LNG, local coal, and natural gas have contributed to the higher generation costs, which are passed on to consumers through the fuel adjustment mechanism.

Key points explaining the price hike:

• Fuel cost variations directly impact electricity tariffs.
• Imported LNG and local coal have increased in price recently.
• The adjustment ensures that power companies recover generation expenses while maintaining supply reliability.

This temporary adjustment mechanism allows Pakistan to manage electricity pricing based on market dynamics, ensuring that the energy sector remains financially sustainable.

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Electricity Generation in December 2025

In December, Pakistan generated a total of 8.487 billion units of electricity, supplying 8.208 billion units to distribution companies. The slight difference accounts for transmission losses and internal consumption by power plants.

The electricity mix in December 2025 was diverse, reflecting a combination of renewable and conventional sources:

• Nuclear power provided the largest share at 25.05%.
• Hydel energy contributed 18.07% of total generation.
• Imported LNG accounted for 17.24%, while local coal produced 13.99%.
• Natural gas generation was 11.20%, and imported coal made up 10.13%.

This diversified energy mix affects electricity costs, as thermal-based generation (coal, LNG, gas) is typically more expensive than hydel or nuclear power.

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Impact on Consumers: Monthly Tariff Adjustment

If NEPRA approves the proposed Rs 0.48 per unit increase, consumers will see a temporary rise in their electricity bills. For an average household consuming 500 units per month, this adjustment could add around Rs 240 to their bill. Businesses and industrial users will experience proportionally higher increases depending on consumption levels.

Key effects on consumers include:

• Short-term increase in monthly electricity bills.
• Higher operational costs for industrial users.
• A reminder to monitor electricity consumption carefully during the adjustment period.

While this adjustment is temporary, it highlights the importance of energy efficiency and cost-saving measures in daily electricity use.

Energy Mix and Its Role in Pricing

Pakistan’s electricity generation relies on a combination of nuclear, hydro, coal, LNG, and gas-based sources. Each energy type has a different cost profile, directly impacting tariff calculations. For instance, hydel and nuclear energy have lower generation costs, while imported LNG and coal are more expensive, especially with global market fluctuations.

The December 2025 energy mix is summarized below:

Energy Source	Percentage of Total Generation
Nuclear	25.05%
Hydel	18.07%
Imported LNG	17.24%
Local Coal	13.99%
Imported Coal	10.13%
Natural Gas	11.20%

Understanding this mix helps consumers and policymakers anticipate changes in electricity pricing and plan for sustainable energy consumption.

NEPRA Hearing and Next Steps

NEPRA will review CPPA’s petition and hold a formal hearing to consider all aspects of the proposed adjustment. The authority may approve, modify, or reject the requested Rs 0.48 per unit increase. Once finalized, the adjustment will be applied to electricity bills for one month.

Steps involved in the process:

• NEPRA schedules and conducts the hearing with CPPA and other stakeholders.
• Verification of generation costs, fuel prices, and distribution efficiency.
• Official notification to consumers and distribution companies about the approved adjustment.

This regulatory framework ensures accountability and transparency in Pakistan’s electricity sector.

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Consumer Advice and Energy Efficiency Tips

As electricity prices rise temporarily, households and businesses can adopt simple measures to reduce costs. Efficient usage and smart planning can help minimize the impact of tariff adjustments.

Tips to manage electricity consumption:

• Use energy-efficient appliances such as LED bulbs and inverter ACs.
• Avoid running high-power appliances during peak hours.
• Unplug devices when not in use to prevent standby energy waste.
• Regularly maintain electrical equipment to ensure optimal performance.

These small steps can significantly reduce electricity bills while promoting sustainable energy use.

Also Read: Electricity Price Increase in Pakistan 2026: Monthly Adjustment May Raise Rates by 48 Paisa per Unit

FAQs

Will electricity prices increase permanently?
No, the Rs 0.48 per unit hike is temporary and applies only for the December 2025 billing cycle under the fuel price adjustment mechanism.

Why is NEPRA involved in electricity pricing?
NEPRA regulates electricity tariffs to maintain transparency, ensure fair pricing, and protect consumer interests while considering generation costs.

How can households manage rising electricity costs?
By using energy-efficient appliances, reducing unnecessary electricity consumption, and adopting smart energy habits, households can lower their bills

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