Electricity consumers may find Rs 1.69/unit relief under FCA of July

NEPRA to hear CPPA-G petition for Rs1.69/unit cut in fuel charges

ISLAMABAD:Power consumers likely to find relief of Rs1.6911 per unit on account of fuel charges adjustment (FCA) for the month of July 2025.

As per details, the National Electric Power Regulatory Authority has scheduled a public hearing on August 28, 2025, to consider the Central Power Purchasing Agency Guarantee Limited’s request for a reduction in the fuel charges adjustment for ex-WAPDA distribution companies for the month of July 2025.

According to the data submitted by CPPA-G, actual fuel costs during July were lower than the reference charges approved earlier. The agency has sought a decrease of Rs 1.6911 per unit over the reference fuel charge of Rs 9.8758 per unit. If approved, this would result in relief for electricity consumers of ex-WAPDA distribution companies in upcoming billing cycles.

During the month under review, a total of 14,123 gigawatt-hours of electricity was generated. Hydropower contributed 40 percent to the energy mix, while local coal accounted for 11 percent and imported coal nearly 15 percent. Gas-based generation provided close to 8 percent, regasified liquefied natural gas about 13 percent, and nuclear power contributed more than 17 percent. Wind power added more than 4 percent, solar just under 1 percent, and electricity imports from Iran made up 0.25 percent. The net energy delivered to distribution companies was 13,666 gigawatt-hours after adjusting for transmission losses of almost 3 percent.

It is relevant to note that the Ministry of Energy has also conveyed fresh policy guidelines following approval by the Economic Coordination Committee of the Cabinet on August 19, 2025. According to these directions, NEPRA has been asked to ensure uniform application of fuel charges adjustment across the country. This would mean that the FCA determined for ex-WAPDA distribution companies would also apply to K-Electric consumers through tariff rationalization.

The guidelines further state that the same rate and application period must be applied to K-Electric as to other distribution companies. Any difference between the monthly FCA for K-Electric and the notified rate will be provided to the utility either through subsidy or cross-subsidy. The policy of uniform FCA application has been effective since the month of June 2025, which was charged in consumer bills in August 2025.

NEPRA has invited all stakeholders and affected parties to attend the hearing and submit written or oral objections as permitted under law. Relevant documents including the CPPA-G request, the Ministry of Energy’s letter, and past determinations of the Authority are available on the NEPRA website.

It is pertinent to mention that the upcoming hearing will decide whether electricity consumers will see a reduction in their bills for the month of July, providing much-needed relief at a time of high energy costs.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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