ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) announced on Tuesday that the negative fuel cost adjustment (FCA) requested by ex-Wapda distribution companies (Discos) would result in an effective tariff increase of 26 paise per unit in December.
During a public hearing, Nepra revealed that while the Central Power Purchasing Agency (CPPA) proposed a reduction of Rs1.02 per unit for October’s FCA, the expiration of the current Rs1.28 per unit negative FCA in November would lead to the effective increase.
Key Insights: Power Supply & Costs: October’s power supply saw a slight 0.03% increase in cost compared to the reference and a 6.8% rise over the same month last year. Total generation stood at 10,262 GWh, with 71% sourced domestically.
Fuel Costs: Average fuel costs in October dropped by 19% compared to last year, amounting to Rs9.25 per unit against Rs11.43 previously.
Energy Sources: Hydropower contributed 31% of the total supply at zero cost. LNG-based generation followed at Rs22.64 per unit, while nuclear energy remained the cheapest at Rs1.51 per unit.
Coal Shift: Local coal usage increased to 14.8%, reducing reliance on imported coal, which dropped to 8.8% of the total share.
The monthly FCA adjustment does not apply to domestic consumers using up to 300 units per month. These cost variations are passed directly to consumers, while quarterly adjustments are incorporated into the base tariff set by the federal government.
The revised FCA will reflect in December’s billing cycle.
Story by Khaleeq Kiani
