Power firms seek Rs1.78 more for January

ISLAMABAD: After a period of relative stability, power companies have sought additional fuel cost charges of over Rs1.78 per unit from consumers across the country in March bills, as demand appeared to pick up and power generators returned to furnace oil. The Central Power Purchasing Agency (CPPA) demanded a higher fuel cost on account of power consumed in January, even though almost 60 per cent of the power was generated from domestic, cheaper sources. Electricity consumption was reported to be around 12pc higher than the same month last year and 8pc higher than December 2025. Once approved, the power companies would charge an additional amount of about Rs16bn to consumers of all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of March. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on February 26 to examine the request for fuel cost adjustment (FCA). The CPPA, which filed the petition for a higher FCA for January consumption, said the power consumption was around 12.1pc higher than the same month of the previous year and about 8pc higher than the previous month, December 2025. The power companies have claimed an average fuel cost of Rs12.18 per unit for January 2026, compared to Rs11.03 per unit of the same month of the previous year and almost Rs2.56 per unit higher than Rs9.62 per unit in December 2025. CPPA demands higher fuel charges citing 12pc increase in demand The CPPA reported that 8,762 billion units (gigawatt hours) of electricity were delivered to Discos in January. The power companies have claimed that the average fuel cost amounted to Rs12.18 per unit in January, against a pre-approved reference fuel cost of Rs10.395 per unit. There is a need for an additional FCA of about Rs1.78 per unit. The CPPA said about 9,140GWh of electricity was generated in January at an estimated fuel expenditure of Rs106.4bn (Rs11.64 per unit), of which 8,762GWh of energy was delivered to Discos for Rs106.7bn (Rs12.18 per unit), leading to a higher fuel cost over what was already charged to consumers in December bills. Regasified Liquefied Natural Gas (RLNG)- based power generation accounted for the largest share of the grid’s fuel, with almost 22pc. This was followed by nuclear power with its 17.5pc share. Traditional hydropower generation dipped to just 8pc in the wake of the annual canal closure for maintenance. Third position was secured by imported coal, with a 17.28pc share, followed by local coal with a 15.4pc share. The share of local gas-based generation stood at 12pc in January, up from 11pc in December. Furnace oil-based generation revived to 3pc, although the fuel has been officially phased out. Furnace oil-based generation was the most expensive at Rs33.55 per unit, followed by Rs20 per unit from RLNG, Rs13.5 per unit from imported coal, Rs12.74 per unit from local gas, and Rs11.63 per unit from local coal. There was no power generation from high-speed diesel. The nuclear fuel cost amounted to Rs2.23 per unit in January. The three renewable energy sources — wind, bagasse and solar — together contributed a 4.55pc share to the grid. Wind and solar have no fuel costs, while bagasse-based plants had a fuel cost of Rs10.39 per unit, with just 1.11pc contribution to the grid. Electricity imports from Iran accounted for 0.38pc of the total, with a fuel cost of Rs22.06 per unit. Published in Dawn, February 19th, 2026

By none@none.com (Khaleeq Kiani)