ISLAMABAD: The National Electric Power Regulatory Authority on Wednesday approved a fuel cost adjustment that will increase electricity bills for most consumers in March, allowing power distribution companies including K Electric to recover higher generation costs incurred in January.

The additional charge will apply to consumers of both K Electric and ex Wapda distribution companies across the country. However, lifeline consumers, electric vehicle charging stations and prepaid users who opted for prepaid tariffs have been exempted from the adjustment. Consumers under the Incremental Consumption Package will also face the higher charge in their monthly bills.

The regulator’s decision comes after a rise in electricity generation and fuel costs during January 2026. Total power generation increased 12 percent year on year to 9,140 gigawatt hours. The electricity produced during the month cost about Rs106.36 billion at an average generation price of Rs11.64 per unit.

After adjustments, the net delivered fuel cost stood at Rs12.1768 per unit. Officials said the power system recorded the highest ever demand for the month of January in terms of both average generation and peak load, forcing the dispatch of costly residual fuel oil plants during peak hours.

RLNG based plants remained the largest contributor to the national grid, generating 2,002 gigawatt hours or around 22 percent of total output. However, electricity from RLNG remained expensive at Rs19.93 per unit. In comparison, nuclear power generated 1,599 gigawatt hours at a significantly lower cost of Rs2.24 per unit.

Imported coal plants produced 1,580 gigawatt hours at Rs13.49 per unit, while local coal contributed 1,404 gigawatt hours at Rs11.62 per unit. Hydropower generation declined 18 percent year on year to 713 gigawatt hours, increasing reliance on costlier fuels. Renewable sources including wind, bagasse and solar accounted for only a small share of total electricity generation.