The National Electric Power Regulatory Authority (Nepra) observed that the proposed negative fuel cost adjustment (FCA) by ex-Wapda distribution companies (Discos) would lead to a tariff increase of 26 paise per unit in December.
During a public hearing, a senior Nepra official reported that the Central Power Purchasing Agency (CPPA) requested a negative FCA of Rs1.02 per unit for October’s electricity usage. Yet, with November’s negative FCA of Rs1.28 per unit expiring, December will see a slight increase in fuel costs.
The government is expected to notify a 26 paise per unit increase in electricity tariffs for December due to a negative fuel cost adjustment (FCA) of Rs.#PakGovt #Increase #PowerTariff #Nationwidehttps://t.co/xNqXIxMZoh pic.twitter.com/Ekjwy6BE5w
— Bloom Pakistan (@bloom_pakistan) November 27, 2024CPPA representatives explained that power supply costs in October were slightly above estimates, 6.8% higher than the previous year. This marked the fourth consecutive month of negative FCAs due to a substantial 20% increase in the base tariff set from July 1, 2024, to June 30, 2025. Domestic fuel sources, nearly half at zero cost, made up over 71% of October’s power supply.
Nepra is reviewing Discos’ proposal for a negative FCA of Re1 per unit. The CPPA noted that October’s power consumption rose to 9.98 billion units due to warmer-than-usual weather, averaging 26 degrees Celsius. Fuel costs for the month were 19% lower than the previous year, credited to a higher base tariff.
For October, the CPPA proposed reducing the fuel charge by Rs1.0159 per kilowatt-hour from the reference rate of Rs10.2752 per unit, resulting in an actual fuel cost of Rs9.259 per unit. This adjustment will affect December’s billing.
Hydropower was the largest power source in October, constituting 31% of the supply. Other major contributors included LNG-based power at about 19.5% and local coal at 14.8%. October’s power generation, mainly from cheaper domestic sources, totalled 10,262 GWh at an estimated cost of Rs93 billion.
Regarding fuel costs, LNG was the most expensive at Rs22.64 per unit, followed by imported and local coal. Renewable sources like wind, bagasse, and solar contributed 3.3% to the grid with minimal costs, except for bagasse, which reduced to Rs5.85 per unit from September’s Rs12.48.
Electricity imports from Iran comprised about 0.4% of the supply, costing Rs25.33 per unit. The monthly FCA, reviewed and applicable for one month if approved, excludes domestic consumers using up to 300 units. Quarterly adjustments for capacity charges and operational costs are incorporated into the base tariff set by the government.
