Electricity Bills Likely to Rise in 2026

Pakistani households and industries may face higher electricity bills next year as the national power regulator began examining a proposal on Tuesday to increase the country’s power purchase price for the fiscal year 2026. This adjustment could raise energy costs across all sectors. During a public hearing, the Central Power Purchasing Agency (CPPA) proposed setting the national power purchase price in the Rs. 25.69-26.69 per unit range. The power purchase price serves as a key benchmark for determining consumer tariffs nationwide. Businesses warn that approving the proposed range would lock Pakistan into another year of expensive electricity, further slowing industrial growth. Nepra Chairman Wasim Mukhtar led the hearing, where CPPA officials justified the proposed price based on projected electricity demand, expected fuel costs, and assumptions about the U.S. dollar exchange rate. However, Member Nepra Rafiq Ahmed Sheikh criticized the submission as “incomplete” and questioned the reliability of the data underpinning the proposal. Nepra officials said the regulator would engage with industry stakeholders before finalizing the rate. Representatives from major business associations voiced strong concerns. Rehan Javed, representing the Federation of Pakistan Chambers of Commerce and Industry, said the numbers indicate that “electricity will not become cheaper,” warning that persistent high power costs are eroding industrial competitiveness. Tanveer Bari of the Karachi Chamber of Commerce and Industry urged Nepra not to “inflate” its exchange-rate assumptions, stressing that even a slight depreciation of the rupee significantly increases the cost of power generation. Nepra will continue evaluating the CPPA’s application over the coming weeks, with a final decision on the national power purchase price for FY2026 expected later this year.