NEPRA Eyes Rs0.3681/Unit FCA Cut for September Bills

ISLAMABAD: Electricity consumers nationwide may see a modest reprieve in their upcoming bills, as the National Electric Power Regulatory Authority (NEPRA) prepares to evaluate a Rs0.3681 per unit reduction in the monthly Fuel Charges Adjustment (FCA) for Ex-WAPDA distribution companies (XWDISCOs) for September 2025.

A public hearing on the proposal is scheduled for October 29, 2025, at NEPRA Tower, with online participation open to consumers and stakeholders.

The Central Power Purchasing Agency – Guarantee (CPPA-G), representing XWDISCOs, reported that September 2025’s actual fuel cost for power generation was Rs7.6554 per unit, below the reference cost set by NEPRA. Consequently, CPPA-G has urged NEPRA to approve a Rs0.3681/kWh tariff decrease.

If greenlit, the reduction will apply to bills for consumers of all Ex-WAPDA distribution companies—including LESCO, MEPCO, GEPCO, FESCO, PESCO, QESCO, SEPCO, HESCO, and TESCO—for one month. It will exclude lifeline consumers and K-Electric users, unless extended to K-Electric under government policy.

This adjustment offers minimal relief against record-high power tariffs and inflated bills, driven by soaring capacity payments, fuel prices, and taxes.

CPPA-G data reveals hydropower led with a 37.99% share of electricity generation in September, followed by nuclear power (17.62%), RLNG (14.41%), local coal (8.01%), imported coal (8.10%), gas (7.47%), RFO (0.79%), and Iranian imports (0.19%). The prevalence of cost-effective hydel and nuclear energy lowered average generation costs.

NEPRA invites consumer representatives and industry stakeholders to the hearing, accessible virtually via a link on its website.

Per federal policy, NEPRA’s FCA decision for XWDISCOs will extend to K-Electric consumers, ensuring uniform fuel cost adjustments nationwide.

Industry sources express cautious optimism that the FCA reduction will ease financial strain, though experts warn the relief is modest against quarterly adjustments and tax-driven tariff hikes.