ISLAMABAD: Public sector power companies have proposed a 57-paise-per-unit negative fuel cost adjustment (FCA) in electricity bills to refund Rs7.2 billion overcharged to consumers last month. This marks the second consecutive month of negative FCA, driven by robust fuel allowances approved by the National Electric Power Regulatory Authority (Nepra) following a 20% base tariff increase, effective July 1, 2023.
In August, domestic fuel sources accounted for 79% of the total power supply, with more than half generated at zero fuel cost. Last month, Nepra approved a 37-paise-per-unit negative FCA for July consumption, which is now set to be replaced by 57 paise for August consumption.
The Central Power Purchasing Agency (CPPA), representing distribution companies (Discos), has filed a petition for the adjustment. If approved, the reduced FCA will reflect in October bills, although it will not apply to low-consumption users.
Nepra will conduct a public hearing on September 26 to review the CPPA’s request.
Story by Khaleeq Kiani
