Regulator approves 75-paisa-per-unit FCA for June consumption, significantly reducing CPPA’s requested Rs1.20 increase
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday notified a 75-paisa-per-unit fuel cost adjustment (FCA), placing an additional Rs9.8 billion burden on electricity consumers during the August billing period.
The adjustment relates to electricity consumed in June 2026 and represents an increase over July, when the FCA stood at Rs0.34 per unit.
Nepra said the positive FCA of Rs0.7503 per kilowatt-hour would apply to eligible consumers of K-Electric and former Wapda distribution companies. However, lifeline consumers, electric vehicle charging stations and prepaid electricity consumers will remain exempt.
Moreover, consumers covered under the incremental consumption package will also pay the adjustment through August bills.
Nepra Cuts CPPA’s Requested Increase
The Central Power Purchasing Agency (CPPA) had initially requested an additional FCA of Rs1.20 per unit after reporting June’s actual average fuel cost at Rs8.9138 per unit against a reference rate of Rs7.7138.
However, Nepra made several adjustments and calculated the actual fuel component at Rs8.4641 per unit. Consequently, the regulator approved a lower 75-paisa increase instead of CPPA’s requested Rs1.20.
Meanwhile, power sector entities reported electricity generation remained 5.6 percent below projections during June.
Nepra also expressed concern over Rs4.9 billion in partial loading charges.
Rooftop Solar Changes Grid Demand Pattern
CPPA attributed partial loading costs to falling daytime grid demand caused by growing rooftop solar generation rather than operational inefficiencies.
As a result, conventional power plants operate at reduced capacity during daylight hours before increasing generation to meet evening demand.
Furthermore, the Power Division warned that authorities could eventually need to curtail renewable generation, including wind and solar, if daytime grid demand continues declining.
Under the existing tariff mechanism, monthly FCAs transfer changes in electricity generation fuel costs directly to consumers, while quarterly adjustments covering capacity payments, operating expenses and system charges become part of the base tariff.
