Nepra approves 33.64 paisa FCA hike for May

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a positive Fuel Charges Adjustment (FCA) of 33.64 paisa per unit for May 2026, applicable to consumers of power distribution companies (Discos) and K-Electric. The Central Power Purchasing Agency-Guaranteed (CPPA-G) had sought a higher positive FCA of 81.73 paisa per unit, arguing that the actual fuel cost for May stood at Rs9.2488 per unit against the reference fuel cost of Rs8.4315 per unit. However, Nepra determined the actual FCA at Rs8.7679 per unit, resulting in a lower adjustment of 33.64 paisa per unit. READ MORE: CPPA-G seeks Re0.82 increase in May FCA A public hearing on the matter was held on June 30, 2026, attended by officials and industry stakeholders, including Rehan Javed from the Korangi Association of Trade and Industry (KATI). During the hearing, Amir Sheikh raised questions regarding the expected Quarterly Tariff Adjustment (QTA) for the ongoing quarter in view of reduced electricity consumption. He also inquired about the timeline for passing on the benefits of reduced oil prices, RLNG terminal charges, and the captive gas levy to consumers. Responding to these concerns, CPPA-G stated that the QTA would be finalised once actual figures for June 2026 are available, adding that the Pakistan Power Management Company (PPMC) does not expect it to be significantly high. On fuel price reductions, CPPA-G clarified that any relief would be reflected in the respective monthly FCA in accordance with the applicable regulatory framework. Regarding RLNG terminal charge waivers, CPPA-G stated that it had no information, while noting that the matter of captive gas levy remains sub judice. Imran Shahid, representing Jamaat-e-Islami, expressed concern that the increase in FCA was due to underutilisation of cheaper power plants and inclusion of part-load charges. The Independent System and Market Operator (ISMO) clarified that efficient generation units are dispatched strictly in line with system demand, while CPPA-G maintained that part-load charges are claimed as per existing agreements. According to Nepra’s decision, Discos and K-Electric will reflect the FCA for May 2026 in consumer bills for July 2026. Copyright Business Recorder, 2026