Government Seeks Approval for Rs. 3.5 Per Unit Tariff Hike in April FCA


The federal government is seeking approval from the National Electric Power Regulatory Authority (NEPRA) to implement an additional Rs. 3.5 per unit charge in the Fuel Cost Adjustment (FCA) for electricity consumed in April 2024.

Despite 75 percent of the power supply in April being generated from cheaper local fuels, the government aims to collect an extra Rs. 29 billion through the FCA.

The surge in FCA is attributed to several factors including lower availability of hydropower, increased prices of domestic coal and gas, and heightened utilization of LNG.

The petition highlights that although the reference fuel cost for March was set at Rs. 5.49 per unit, the actual cost escalated to Rs. 8.98 per unit. In April, 8,639 gigawatt-hours (GWh) of electricity were generated with an estimated fuel cost of Rs. 79.56 billion (equivalent to Rs. 9.21 per unit), out of which 8,375 GWh were delivered to DISCOs at Rs. 8.98 per unit.

NEPRA has agreed to conduct a public hearing on May 30 to deliberate on the proposed FCA. If endorsed, consumers can expect to see the increased FCA reflected in their June 2024 bills.