Consumers to get around Rs1.14 per unit relief in May bills as FCA falls

Power consumers are expected to receive relief of around Rs1.14 per unit in electricity bills for March 2026, to be reflected in May, as the Central Power Purchasing Agency-Guaranteed (CPPA-G) has proposed a lower fuel charges adjustment.

In its petition to the National Electric Power Regulatory Authority (NEPRA), CPPA-G has sought a positive FCA of Rs0.2660 per unit, which would replace the higher Rs1.42 per unit charged in the previous month, resulting in a net reduction for consumers.

Despite the proposed adjustment adding an estimated Rs2.3 billion burden, the overall impact remains lower due to a decline in fuel costs compared to earlier months.

The reduction is largely linked to a shift in the power generation mix. Hydropower generation increased by over 62% to 2,105 GWh in March 2026, up from 1,297 GWh a year earlier, making it the largest contributor with a 23.55% share.

In contrast, RLNG-based generation declined by 67% to 504 GWh from 1,528 GWh in March 2025, reducing reliance on higher-cost fuel sources.

Data shows that the overall FCA impact stood at Rs8.2612 per unit in March, slightly lower than Rs8.3743 per unit in February, and about Rs0.96 per unit lower compared to March last year.

Nuclear power accounted for 21.95% of generation at 1,962 GWh, with a cost of Rs2.7836 per unit, while local coal contributed 1,498 GWh at Rs11.14 per unit and imported coal 1,234 GWh at Rs15.2324 per unit.

Gas-based generation stood at 1,014 GWh, while RLNG generation, though reduced in share to 5.64%, remained costly at Rs24.5559 per unit. Residual fuel oil-based generation was limited to 90 GWh but carried the highest cost at Rs36.1606 per unit.

Other trends showed local coal generation rising by 7.5% and gas-based generation increasing by 3.57% year-on-year, while nuclear generation declined by 11.7%.

NEPRA has scheduled a public hearing on April 28, 2026, to review CPPA-G’s petition and determine the final FCA for March.