Electricity prices: Big update from power division on June bills

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ISLAMABAD: The Ministry of Energy (Power Division) said on May 18, 2026, that timely government interventions, prudent policy decisions, and effective load management have helped prevent a major rise in electricity prices for consumers in June 2026.

According to the official statement, electricity consumers were expected to face an increase of Rs5 to Rs6 per unit due to rising global fuel costs, RLNG supply disruptions, and higher reliance on furnace oil-based generation. However, the government said it successfully avoided passing this burden on to consumers through higher electricity prices.

The Power Division stated that due to improved operational efficiency, reduced transmission losses, and policy continuity, a reduction of Rs1.93 per unit under the quarterly tariff adjustment (QTA) will be passed on to consumers, easing pressure on electricity prices by around Rs65 billion.

Officials added that although the monthly fuel adjustment for April 2026 initially indicated a sharp rise in costs, it was reduced to Rs1.73 per unit through administrative measures and optimisation of the generation mix, helping control electricity prices.

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The statement highlighted that combined effects of quarterly and monthly adjustments have largely neutralised each other, with consumers expected to see either a negligible change or slight relief in June 2026 bills.

The ministry said global energy volatility, RLNG shortages linked to geopolitical tensions, and fluctuations in Brent crude had significantly impacted generation costs, but policy actions helped contain the pressure on consumers.

Despite these challenges, the government maintained that better fuel allocation, increased reliance on local gas resources, and controlled load management helped avoid a major tariff shock.

The Power Division concluded that revised tariff projections remain aligned with economic realities, and without these interventions consumers would have faced a significant increase in electricity prices.