Power tariff likely to rise by Rs2.50/unit for July as govt seeks to recover over Rs34bn under FCA

Profit reported that the government may lift power tariffs by roughly Rs2.50 on every unit consumed for July 2026. The aim is to recover over Rs34 billion from Discos and K-Electric customers through the monthly Fuel Charges Adjustment, or FCA.

Consumption rose in July, and more of the demand was met with fuels that cost more, namely spot-market LNG and furnace oil, which together drove the larger positive FCA. Earlier, Nepra signed off on a Rs0.7503 per unit upward adjustment for June 2026, less than the Rs1.20 per unit CPPA-G had requested.

Nepra also questioned roughly Rs4.9 billion in partial-loading costs and asked CPPA-G for a plan to reduce them. CPPA-G attributed the charges to rising rooftop solar, which lowers daytime demand, rather than operational inefficiency, and promised steps to cut them. ISMO warned that switching plants off to dodge these charges would bring heavy start-up expenses. Industrial users already face high energy costs, and exporters are under extra strain from the worsening Middle East situation.