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The Cost of Power

28 0
13.10.2026

Repeated electricity price adjustments are deepening the financial strain on Pakistani households and businesses, raising questions about affordability, transparency and the need for lasting reform. Electricity consumers across Pakistan are once again being asked to pay more for a service that has become increasingly difficult to afford. The National Electric Power Regulatory Authority (Nepra) has approved an additional fuel cost adjustment of Rs1.11 per unit for electricity consumed in August. The increase is expected to appear in October bills, adding an estimated Rs16 billion to the financial burden on consumers. While fuel cost adjustments are presented as a mechanism to account for fluctuations in electricity generation costs, their repeated application has become a source of considerable anxiety for households and businesses. For consumers already struggling with inflation, high taxation and stagnant purchasing power, even a seemingly modest increase per unit can translate into a significant additional expense. The central issue is not simply the latest increase. It is the wider pattern of electricity pricing that continues to place the burden of an inefficient and expensive power system on consumers. For ordinary households, electricity bills have become a major component of monthly expenditure. Families are increasingly compelled to cut spending on food, education, healthcare and other essentials to meet utility costs. Small businesses, meanwhile, face higher operating expenses that undermine profitability, discourage investment and ultimately feed into the prices of goods and services. Fuel cost adjustments are intended to reflect changes in the cost of fuel used for electricity generation. In principle, such adjustments can help ensure that tariffs account for variations in the cost of producing power. However, the mechanism raises important questions when consumers are repeatedly confronted with additional charges without a clear understanding of the underlying calculations or the broader measures being taken to reduce generation costs. Transparency is therefore essential. Nepra and the relevant power-sector authorities must ensure........

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