Power consumers likely to get Rs 0.36/unit relief under September FCA

Dominance of cheaper hydel and nuclear energy sources in September helped lower the average generation cost compared to the previous months

ISLAMABAD: Electricity consumers across the country may get a slight relief in their upcoming bills, as the National Electric Power Regulatory Authority (NEPRA) is set to consider a reduction of Rs0.3681 per unit in the monthly Fuel Charges Adjustment (FCA) for Ex-WAPDA distribution companies (XWDISCOs) for the month of September 2025.

A public hearing on this proposal will be held on October 29, 2025 at NEPRA Tower, with online participation also allowed for consumers and other stakeholders.

According to the data submitted by the Central Power Purchasing Agency – Guarantee (CPPA-G) on behalf of XWDISCOs, the actual fuel cost for power generation in September 2025 was Rs7.6554 per unit, which is lower than the reference cost set by the regulator. Based on this calculation, CPPA-G has requested NEPRA to approve a decrease of Rs0.3681/kWh in consumer tariffs.

If approved, the reduction will be reflected in the electricity bills of consumers of all Ex-WAPDA distribution companies — including LESCO, MEPCO, GEPCO, FESCO, PESCO, QESCO, SEPCO, HESCO, and TESCO — for one month. However, it will not apply to lifeline consumers and those who use K-Electric power, unless the same adjustment is extended to KE under government policy.

This reduction brings negligible relief to consumers who have been facing record-high power tariffs and inflated monthly bills in recent months due to rising capacity payments, fuel prices, and taxes.

The data submitted by CPPA-G shows that hydropower plants contributed 37.99 % of total electricity generation in September, the highest share in the overall energy mix.

Nuclear power followed with 17.62 %, RLNG-based generation contributed 14.41%, while local coal accounted for 8.01% and imported coal 8.10%. Gas-based generation stood at 7.47%, RFO-based plants at 0.79%, and imported electricity from Iran made up 0.19%.

The dominance of cheaper hydel and nuclear energy sources in September helped lower the average generation cost compared to the previous months.

NEPRA has invited all interested parties, including consumer representatives and industry stakeholders, to attend the hearing and share their views. The hearing can be joined virtually via the link shared on NEPRA’s official website.

In line with the federal government’s policy for uniform FCAs, the decision made by NEPRA for XWDISCOs will also be applicable to K-Electric consumers, ensuring parity in fuel cost adjustments across the country.

Industry sources are hopeful that NEPRA’s approval of the FCA reduction will slightly ease their financial burden, though experts believe that the relief will be modest compared to the overall increase in power tariffs caused by quarterly adjustments and taxes.



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

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