Power Discos Seek 30 Paisa Per Unit FCA Reduction for February

Pakistan’s power distribution companies (Discos) have requested a 30-paise per unit reduction in fuel cost adjustment (FCA) for February, citing lower electricity generation costs. Despite 84% of power coming from cheaper domestic sources, electricity demand dropped by 3.3% compared to last year and 14% from January.

According to the Central Power Purchasing Agency (CPPA), the average fuel cost in February was Rs8.23 per unit, down from Rs9.4 per unit in the same period last year. The National Electric Power Regulatory Authority (Nepra) will review the petition in a public hearing on March 26 to decide whether to approve the FCA reduction of Rs0.2984 per unit. If granted, consumers could see refunds of approximately Rs2 billion in their April electricity bills.

Electricity generation in February reached 6,945 GWh, costing Rs52.58 billion at an average fuel rate of Rs7.57 per unit. Hydropower (27%) and nuclear energy (26.6%) were the top contributors, followed by local coal (15%) and RLNG (14%). The costliest power sources were LNG (Rs22.35/unit), imported coal (Rs18.90/unit), and local coal (Rs13.78/unit).

This fuel cost decline is largely due to increased reliance on domestic energy and the higher base tariff introduced in July 2024. The upcoming Nepra decision could provide financial relief to consumers, making electricity bills more manageable.