NEPRA notifies relief of Rs0.4812 per unit under Sep FCA

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has issued its decision on the Central Power Purchasing Agency–Guaranteed (CPPA-G) petition for the monthly Fuel Charges Adjustment (FCA) for September 2025, announcing a relief of Rs0.4812 per kilowatt-hour (kWh).

The relief will be passed on to consumers in their November 2025 electricity bills.

The notified FCA will also apply to K-Electric (KE) consumers under the tariff rationalization mechanism, as approved by the Economic Coordination Committee (ECC) on August 19, 2025.

Any difference between the monthly FCA rate determined for KE and the notified FCA will be covered through a government subsidy, NEPRA said.

Fuel charge adjustments reflect the variation in global fuel prices used for power generation and changes in the generation mix. These adjustments are incorporated into consumer bills after NEPRA’s scrutiny and approval.

According to NEPRA’s decision, the September FCA will apply to all consumer categories except lifeline consumers, domestic protected consumers, electric vehicle charging stations (EVCS), and prepaid electricity consumers of all categories who have opted for the prepaid tariff.

Earlier, the NEPRA reduced K-Electric’s (KE) average base tariff by Rs7.6 per unit — from Rs39.97 to Rs32.37 per unit — following a detailed review of the company’s Multi-Year Tariff (MYT) for FY2024–FY2030.

The decision came on a petition filed by the Power Division, along with multiple review motions regarding earlier MYT determinations.

The revised determination covers several aspects, including KE’s generation, transmission, distribution, and supply businesses; the Transmission and Distribution Investment Plan and Losses Assessment for FY2024–FY2030; and write-off claims for MYT 2017–2023.

NEPRA upheld its earlier stance on KE’s Rs50 billion write-off claims but made amendments in several tariff-related areas.

The regulator directed K-Electric to make system adjustments in line with regulatory requirements and to increase reliance on low-cost national grid electricity. It also approved the closure of KE’s SGTPS and KGTPS plants, effective from September 23, 2025, stating that their tariffs will be discontinued following the next gazette notification.