Islamabad: Public sector power companies have proposed a Rs1.016 per unit negative Fuel Cost Adjustment (FCA) in electricity bills, potentially refunding Rs10 billion to consumers overcharged in October 2024. If approved, this will mark the fourth consecutive month of negative FCA, enabled by significant fuel cost savings and a 20% base tariff hike implemented for the fiscal year 2024-2025.
The Central Power Purchasing Agency (CPPA) reported an 8% year-on-year rise in power consumption in October, reaching 9.98 billion units due to the delayed onset of winter. Domestic energy sources accounted for 71% of total power generation, with nearly half produced at zero fuel cost.
Fuel costs for October averaged Rs9.25 per unit, down 19% from Rs11.43 per unit the previous year. Hydropower led the energy mix with a 31% share, followed by LNG (19.5%), local coal (14.8%), and nuclear (14.05%). Renewable energy sources, including wind, bagasse, and solar, contributed 3.3% of the supply at minimal or no fuel cost.
The CPPA has requested Nepra to approve the Rs1.02 per unit negative FCA adjustment for December bills. A public hearing on the proposal is scheduled for November 26.
Story by Khaleeq Kiani
