NEPRA finalises hearing on July 25 fuel cost relief

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has finalised its hearing on the Central Power Purchasing Agency Guarantee (CPPA-G)’s request for monthly Fuel Charge Adjustments (FCA) for July 2025.

During the proceedings, CPPA-G sought a relief of PKR 1.69 per unit. Following the public hearing, NEPRA will announce its determination, specifying the approved FCA amount to be reflected in consumer bills and the applicable billing period.

Along with the request of FCA, it was further presented that the notified FCA will also be applicable on K-Electric (KE) customers, by way of tariff rationalisation as approved by the Economic Coordination Committee (ECC) on August 19, 2025 and any difference between the monthly FCA rate determined for KE and notified FCA be made available to KE by way of subsidy. Moreover, as per the letter submitted by the Ministry of Energy, the uniform FCA application shall start from the month of June 2025.

When NEPRA Authority asked for KE’s point of view, CEO KE Moonis Abdullah Alvi shared that the company will be fully compliant with NEPRA’s notified decision on the imposition of the uniform FCA.

Utilities incur fuel charge adjustments due to global variations in fuel prices used to generate electricity, and the changes in the generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.

As per the Regulatory Authority’s decision, the negative FCA shall apply to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff.