NEPRA concludes hearing on June FCA

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Wednesday concluded a public hearing into a petition.

The Central Power Purchasing Agency (CPPA-G) filed the petition on behalf of all power distribution companies (DISCOs), proposing a reduction in electricity rates under the monthly Fuel Cost Adjustment (FCA) for June.

The public hearing was presided over by the Chairman of NEPRA, Waseem Mukhtar, while officials from CPPA-G, members of the business community, representatives from the Ministry of Energy, journalists, and the general public were also actively present in the hearing.

The CPPA-G has sought a 65 paisa per unit reduction in the power tariff for June. If approved, this adjustment will only apply for one month.

The adjustment would be applicable to all DISCOs’ consumers, except lifeline users, protected consumers, prepaid users, and electric vehicle charging stations. The adjustment would also not apply to K-Electric consumers.

NEPRA will issue a detailed decision after reviewing the data.

As per the request, over 13.31 billion units of electricity were generated during June, with the average cost of generation recorded at Rs 7.68 per unit.

In comparison, the reference cost for the same period was set at Rs 8.33 per unit, which has opened the window for a possible relief in electricity tariffs.

A significant reason for the drop in production cost is the increased contribution of hydropower, which accounted for 39 percent of the total electricity generation during June.

The application also states that 20 percent of electricity was generated using a combination of local and imported coal, while 16 percent came from imported RLNG (Re-gasified Liquefied Natural Gas).

If NEPRA approves the request, electricity prices will effectively become cheaper for millions of consumers already facing economic challenges.