Nepra Approves Re0.75 Per Unit Power Surcharge

The National Electric Power Regulatory Authority (Nepra) has approved a positive Fuel Charges Adjustment (FCA) of Re0.75 per unit for electricity distribution companies (Discos) and K-Electric, allowing the recovery of around Rs9.8 billion from consumers for June 2026.

The approved adjustment is significantly lower than the Re1.20 per unit requested by the Central Power Purchasing Agency-Guaranteed (CPPA-G), which had sought to recover Rs15.68 billion, citing higher RLNG costs.

Nepra determined the actual FCA impact at Re0.7503 per unit, with the adjustment set to appear in consumers' electricity bills for August 2026.

During the review, the regulator raised concerns over Rs4.9 billion in partial loading charges, around Rs1 billion higher than the amount recorded in June 2025. CPPA-G attributed the increase to falling daytime electricity demand due to the rapid growth of rooftop solar, which has forced some power plants to operate at partial capacity during solar hours.

Nepra also questioned the continued open-cycle operation of Guddu 747 since 2021. ISMO reported that operating the plant in this mode resulted in a 128 GWh shortfall and an estimated financial impact of Rs300 million compared with combined-cycle operation.

The regulator also examined reduced nuclear power generation. ISMO said K-3 was operating under a partial outage due to reactor-related issues, while Chashma C-2 and C-4 experienced forced outages.

Lower gas-based generation was also discussed, with the Energy Ministry attributing the decline to RLNG shortages linked partly to international market conditions. Authorities avoided expensive spot cargoes and relied on RFO and HSD-based plants only when required to maintain system stability.

Nepra ultimately approved an FCA of Re0.7503 per unit, considerably below CPPA-G's original request, with the additional charge to be recovered through August 2026 electricity bills.