Electricity Prices Set to Rise Again – Government Prepares Fresh Per Unit Increase

In another major development for consumers already struggling with high utility bills, the federal government has decided to increase electricity prices.

Preparations have been completed to raise the power tariff by up to Rs. 2.06 per unit, adding further pressure on household and commercial consumers across Pakistan.

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The increase will be implemented under the monthly Fuel Price Adjustment (FPA) mechanism.

January Fuel Price Adjustment – What’s Proposed?

According to official sources, the Central Power Purchasing Agency (CPPA) has submitted a request to increase electricity tariffs by Rs. 1.78 per unit for January under Fuel Price Adjustment charges.

The request will be reviewed by the regulator in a formal hearing.

The hearing date has been fixed for 26 February by the National Electric Power Regulatory Authority (NEPRA).

If approved, the additional amount will be charged to consumers in upcoming electricity bills.

December FPA Already Approved

While January’s increase is still under review, NEPRA has already approved a Rs. 0.28 per unit increase for December’s Fuel Price Adjustment.

This approved amount will be recovered from consumers in the current month’s electricity bills.

This means consumers may see:

• Previous month adjustment charges

• New proposed FPA charges (if approved)

• Existing base tariff

all reflected in their upcoming bills.

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Why Does Fuel Price Adjustment Happen?

Fuel Price Adjustment (FPA) is applied monthly to reflect changes in:

• International fuel prices

• Exchange rate fluctuations

• Power generation mix

• Capacity payments

If fuel costs increase during a month, the additional burden is passed on to consumers in future billing cycles.

How Much Will Your Bill Increase?

Electricity cost directly depends on units consumed. The general bill calculation formula is:

$$TotalBill=UnitsConsumed\times PerUnitPrice$$

For example:

• If you consume 300 units

• And per unit price increases by Rs. 2

Your bill may increase by around Rs. 600 (excluding taxes and surcharges).

This shows how even a small per-unit increase significantly impacts middle-class households.

Impact on Pakistani Consumers

If the full Rs. 2.06 per unit hike is implemented, the effects could include:

• Higher domestic electricity bills

• Increased business operational costs

• Inflationary pressure

• Rise in production expenses

For industries, especially small and medium enterprises, recurring tariff hikes affect competitiveness and pricing.

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