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Pakistan’s electricity sector recorded a historic hydel output in November, with 3,153 GWh generated 10.2% higher than last year and the highest ever for the month. The surge in hydel production helped lower fuel costs, prompting distribution companies to request a negative fuel cost adjustment (FCA) of Rs0.72 per unit.
Total electricity generation in November stood at 8,050 GWh, slightly above last year’s 8,032 GWh but 19% lower than October due to seasonal demand decline. Year-to-date cumulative generation for the first five months of FY26 reached 58,869 GWh, broadly unchanged from the previous year.
Hydel and nuclear power dominated the generation mix, while RLNG output fell 23.3% and coal-based generation lagged projections. Analysts noted that total generation remained 1% below the National Electric Power Regulatory Authority’s reference level, affected by rising distributed generation and subdued system demand.
Impact on Fuel Costs
Lower global oil and coal prices, combined with higher hydel share, reduced the adjusted fuel cost to Rs6.16 per unit, below the reference Rs6.88. Analysts expect December generation to remain stable, with hydel output continuing to support reduced fuel costs and a healthier energy mix.
“Hydel generation has played a key role in mitigating fuel costs this month, providing relief to both distribution companies and consumers,” said an energy sector analyst.
