Electricity Bills Set to Rise as NEPRA Reviews December FCA

Pakistan’s electricity consumers are bracing for another tariff hike, with the December Fuel Cost Adjustment (FCA) expected to add nearly Rs 4.66 per unit to monthly bills. The adjustment, submitted by power distribution companies, reflects higher generation costs during December 2025.

The National Electric Power Regulatory Authority (NEPRA) will review the FCA petition before approving the increase. If cleared, the hike will be applied to electricity consumed in December but reflected in bills issued in January 2026.

Fuel Cost Adjustments are designed to balance fluctuations in fuel prices, allowing power companies to recover additional expenses. However, for millions of households and businesses, this mechanism often translates into heavier financial burdens.

Officials note that lifeline consumers—low‑usage households—are typically exempt from FCA charges, offering some relief to the most vulnerable. Still, the majority of consumers will face higher costs, intensifying inflationary pressures already weighing on the economy.

The increase is driven by several factors: rising global oil and gas prices, Pakistan’s reliance on imported fuel for thermal power generation, and the depreciation of the rupee against the US dollar. Together, these elements have made electricity production more expensive, forcing adjustments in consumer tariffs.

For families, the hike means tighter monthly budgets. For businesses, it raises production costs, potentially leading to higher prices for goods and services. Analysts warn that the adjustment could further fuel inflation, reducing purchasing power across the country.

Energy experts suggest that consumers can mitigate the impact by adopting energy‑efficient appliances, managing load during peak hours, and exploring renewable solutions like rooftop solar. While these measures may not offset the entire increase, they can help reduce dependency on costly grid electricity.

As NEPRA prepares its final decision, the December FCA highlights the ongoing challenges of Pakistan’s energy sector—where global market shifts and local economic pressures continue to shape the cost of power for millions.