The federal government is seeking an additional Rs. 3.5 per unit in Fuel Cost Adjustment (FCA) for electricity consumed in April 2024. They have filed a petition with the National Electric Power Regulatory Authority (NEPRA) to approve this measure, aiming to collect Rs. 29 billion despite 75 percent of April’s power supply being generated from cheaper local fuels.
The increase in FCA is attributed to various factors including lower availability of hydropower, higher prices of domestic coal and gas, and increased utilization of LNG. According to the petition, the actual fuel cost for March was significantly higher than initially determined. In April, 8,639 gigawatt-hours (GWh) of electricity were generated at an estimated fuel cost of Rs. 79.56 billion, with 8,375 GWh delivered to DISCOs at Rs. 8.98 per unit.
NEPRA has agreed to hold a public hearing on May 30 to discuss the proposed FCA. If approved, consumers can expect to see the increased FCA reflected in their June 2024 bills.
