ISLAMABAD/
KARACHI:

The National Electric Power Regulatory Authority (NEPRA) on Thursday notified electricity consumers of an additional burden of Rs1.11 per unit in October billing due to higher fuel costs, amounting to Rs16 billion for all consumers.

NEPRA notified the positive Fuel Charges Adjustment (FCA) for August 2026 at Rs1.11 per unit, citing an increase in the actual fuel cost of electricity generation compared with the reference fuel charges.

According to the notification, the actual fuel charges component for August stood at Rs8.21 per kilowatt-hour (kWh) against the reference fuel charges component of Rs7.10 per kWh. This resulted in a fuel cost adjustment of Rs1.11 per unit, which will be reflected in the October electricity bills.

The regulator said the adjustment had been made under the provisions of the NEPRA Act, following amendments to the law that empowered the authority to adjust approved tariffs in line with variations in fuel charges.

Read: NEPRA reviews incremental consumption package

The positive FCA will apply to all consumer categories of ex-WAPDA distribution companies (XWDISCOs) and K-Electric, except lifeline consumers, electric vehicle charging stations (EVCS) and prepaid electricity consumers who have opted for prepaid tariffs.

The adjustment will also apply to electricity consumption falling under the Incremental Consumption Package, according to the notification.

NEPRA directed XWDISCOs and K-Electric to incorporate the August FCA in bills issued during October. The adjustment is to be calculated on the basis of units consumed and billed in August and must be shown separately on consumers’ electricity bills.

Notification of NEPRA issued on October 7, 2026

In cases where October bills were issued before the FCA notification, the additional amount may be recovered in the subsequent billing month, NEPRA said.

The regulator also extended the same FCA to K-Electric consumers in line with federal government policy guidelines concerning the application of uniform fuel charge adjustments. It directed the distribution companies and K-Electric to comply with court orders while implementing the adjustment.

K-Electric wins interim relief as SHC suspends NEPRA tariff orders

Separately, the Sindh High Court (SHC) suspended tariff orders issued by the NEPRA Appellate Tribunal as well as related notifications issued by the National Electric Power Regulatory Authority (NEPRA) concerning K-Electric’s (KE) Multi-Year Tariff (MYT) for the period FY2024 to FY2030, a press release issued by KE said on Thursday.

“The petition challenges judgments issued by the NEPRA Appellate Tribunal on September 23, 2026, review determinations made by the National Electric Power Regulatory Authority (NEPRA) on October 20, 2025, as well as subsequent notifications issued by NEPRA and the Ministry of Energy’s Power Division,” it read further.
During the case proceedings, the court issued notices to NEPRA and other respondents on appeals filed by KE challenging the tribunal’s tariff decisions and NEPRA notifications, directing the parties to submit their responses by October 15.

KE’s counsel Barrister Ayan Memon argued that while NEPRA had the authority to review tariff matters, it could not determine a new tariff afresh. The counsel contended that NEPRA had exercised its powers on its own to make changes to the tariff, “which was unlawful”.

Memon also said that the review determinations had resulted in a substantial adverse impact on its MYT for the FY2024-FY2030 control period, making the revised tariff “financially unsustainable” for the company.

Meanwhile, The Express Tribune reported that counsel representing NEPRA said the authority holds the statutory mandate to determine K-E’s tariffs.
“Tariffs are reviewed every seven years,” the counsel told the court, adding that the tariff for the period from 2024 to 2030 had been determined through different stages.

According to NEPRA, the supply tariff was determined on May 27, 2025, while the generation tariff was determined on October 22, 2024. The distribution and transmission tariffs were determined on May 23, 2025.

After hearing the arguments, the SHC ordered that the interim impugned notifications and orders were suspended.