NEPRA to review 65 paisa FCA reduction for October and Rs25.69 to Rs26.69 power purchase price for 2026

A proposed Rs0.6508 per unit cut in October’s fuel adjustment goes before the regulator as it also begins hearings on CPPA’s projected national purchase price for next year.

ISLAMABAD:Electricity consumers may finally see a breather in their monthly bills, as the National Electric Power Regulatory Authority (NEPRA) is set to hear a request seeking a 65 paisa per unit reduction on account of Fuel Charge Adjustment (FCA) for October 2025.

According to data submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G), the total energy generated during October stood at 9,886 GWh, with the cost of generation calculated at Rs84,090 million, translating into an average fuel cost of Rs8.5062 per unit. After accounting for transmission losses of 2.35 percent and adjustments, 9,630 GWh were delivered to DISCOs at a cost of Rs83,949 million or Rs8.7177 per unit.

Based on this data, CPPA-G has sought a decrease of Rs0.6508/kWh compared to the reference fuel charges of Rs9.3685/kWh already notified for Ex-WAPDA DISCOs.

According to industry sources, if approved by NEPRA, the proposed 65 paisa per unit reduction in the October Fuel Charge Adjustment will provide direct financial relief to electricity consumers of Ex-WAPDA distribution companies. The cut in the FCA would slightly lower the overall cost of monthly bills, easing the burden at a time when consumers are already facing high electricity prices. Since the Federal Government’s policy guidelines apply a uniform FCA, this relief will also extend to K-Electric consumers, ensuring that households and businesses across the country benefit from the reduced fuel-based cost of electricity for the month of October, said sources.

To review the request, NEPRA has scheduled a public hearing on November 27, 2025, at NEPRA Tower, with online participation also available.

NEPRA has invited all interested or affected parties to submit written or oral objections as per law.

Additionally power consumers across the country could face a significant increase in electricity bills next year, as the National Electric Power Regulatory Authority (NEPRA), Tuesday, began hearings on a proposal to set the national power purchase price for the 2026 fiscal year.

The Central Power Purchasing Agency (CPPA) presented its case before NEPRA, chaired by Wasim Mukhtar, suggesting that the cost of buying electricity may range between 25.69 rupees and 26.69 rupees per unit. The determination of the power purchase price is a key factor that directly affects the tariffs paid by households and industries across the country.

During the Tuesday’s hearing, CPPA based its proposal on projected electricity demand, the U.S. dollar exchange rate, and fuel price estimates. However, NEPRA expressed skepticism over the submission.

Member Rafiq Ahmed Sheikh termed the application incomplete and deficient, raising questions about the reliability of the underlying data. The regulator indicated that consultations with industry stakeholders will continue before a final decision is made.

Industry representatives voiced concerns over the proposed rates. Rehan Javed of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) warned that the suggested power purchase prices would keep electricity costly, hurting industrial competitiveness. Tanveer Bari from the Karachi Chamber of Commerce and Industry urged NEPRA to ensure the dollar exchange rate is not inflated excessively, noting that a weaker rupee would further increase the cost of power generation.

NEPRA is expected to continue reviewing CPPA’s application, with a final decision on the 2026 power purchase price anticipated later this year.

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

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