ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has completed its hearing on the request of Central Power Purchasing Agency Guarantee (CPPA-G) to allow July 2025 Fuel Charge Adjustment (FCA).
In the session, CPPA-G suggested a reduction of PKR 1.69 per unit. NEPRA will now make and issue its final decision, consisting of the approved FCA and the billing cycle with which it will charge the consumer against and the way it will show on the consumer bills.
It was also mentioned, the approved FCA shall be extended to the consumers of K-Electric (KE) by tariff rationalisation, in accordance with a decision of the Economic Coordination Committee (ECC) dated August 19, 2025. Any disparity between the FCA rate and the national notified rate of KE will be subsidized through government subsidy. This standardized FCA policy will become effective in June 2025 according to a submission of the Ministry of Energy.
In response to NEPRA enquiry, KE CEO Moonis Abdullah Alvi affirmed that KE would completely comply with the final decision of NEPRA on uniform implementation of FCA.
Fuel charge adjustment is made as a result of change in international fuel prices and the power generation mix. These alterations affect the cost of electricity production and are reflected to the consumers upon the assessment and approval of NEPRA. Consumers get relief when world fuel prices are low as the FCAs are negative.
NEPRA further clarified that the adverse FCA will be applicable to all the categories of consumers, excluding the lifeline consumers, those consumers who are considered to be under the protection of the domestic category, Electric Vehicle Charging Stations (EVCS) and those consumers who have prepaid electricity meters under the prepaid tariff plans.
