NEPRA approves Rs2.3673 per unit FCA for September

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a positive Fuel Charges Adjustment (FCA) of Rs2.3673 per unit for electricity consumers of ex-WAPDA distribution companies (XWDISCOs) and K-Electric for September 2026, to be reflected in November bills.

The adjustment is lower than the Rs2.5624 per unit initially claimed by the Central Power Purchasing Agency-Guaranteed (CPPA-G), following regulatory adjustments in fuel costs, transmission losses and other components of the monthly calculation.

The September FCA will apply uniformly to consumers of XWDISCOs and K-Electric under the government’s uniform tariff policy, except lifeline consumers, electric vehicle charging stations and prepaid electricity consumers who have opted for prepaid tariffs.

According to NEPRA’s decision, the adjustment will also apply to consumption falling under the Incremental Consumption Package (ICP).

The regulator directed distribution companies to reflect the September FCA in November 2026 electricity bills. In cases where November bills have already been issued before notification of the decision, the adjustment may be recovered in the subsequent billing month.

The FCA will be separately shown in consumers’ bills on the basis of electricity units billed for September 2026.

CPPA-G filed its FCA petition on October 15, 2026, claiming an actual fuel charges component of Rs10.0220 per unit against the reference fuel charges component of Rs7.4596 per unit, resulting in a requested adjustment of Rs2.5624 per unit.

NEPRA conducted a public hearing on October 29, 2026, attended by representatives of CPPA-G, National Grid Company (NGC), Independent System and Market Operator (ISMO), Power Planning and Monitoring Company (PPMC), Power Division, consumers and other stakeholders.

CPPA-G informed the regulator that electricity generation during September 2026 increased by 0.98 per cent compared with the generation assumed in the reference tariff.

The generation mix also witnessed significant changes, including higher reliance on imported coal and lower generation from hydel, local coal and RLNG-based power plants.

Imported coal generation increased from 1.14 billion units assumed in the reference mix to 2.16 billion units during September, while its fuel cost increased from Rs11.78 per unit to Rs17.23 per unit.

Local coal generation declined from 1.48 billion units to 1.33 billion units, with its fuel cost recorded at Rs5.99 per unit.

Hydel generation declined from 5.05 billion units to 4.83 billion units, while nuclear generation decreased from 2.11 billion units to 1.89 billion units.

RLNG-based generation fell from 1.48 billion units in the reference mix to 0.80 billion units during September, with its fuel cost recorded at Rs39.74 per unit.

Generation from gas-based power plants increased from 0.76 billion units to 1.07 billion units, while fuel cost rose from Rs10.42 per unit to Rs13.04 per unit.

The regulator also noted that electricity generated through high-cost fuels, including high-speed diesel (HSD) and furnace oil, had significantly higher fuel costs. HSD-based generation was recorded at Rs62.14 per unit, while furnace oil-based generation cost Rs44.86 per unit.

During the hearing, stakeholders questioned the utilisation of imported coal over local coal, higher generation costs from HSD and RLNG, transmission losses and the impact of fuel costs on consumers.

CPPA-G maintained that power plants were dispatched by the system operator in accordance with the Economic Merit Order, subject to operational constraints and system requirements.

It also clarified that the imposition of levies on petroleum products, including HSD and furnace oil, falls within the domain of the federal government and the Petroleum Division rather than CPPA-G.

The regulator made several adjustments while determining the September FCA.

NEPRA reduced fuel costs claimed for certain power plants after comparing CPPA-G’s claims with approved fuel cost components. The regulator also examined previous-period adjustments amounting to Rs5.759 billion, including actualisations relating to earlier months and adjustments associated with reduced indigenous gas supplied to RLNG-based power plants.

Regarding RLNG-based plants, CPPA-G sought a negative adjustment of Rs10.617 billion relating to indigenous gas supplied by SNGPL under a special arrangement approved by the Economic Coordination Committee (ECC).

The arrangement allowed indigenous gas supplied to RLNG-based power plants in lieu of imported RLNG from April 1 to October 31, 2026, to be charged at Rs2,000 per MMBTU.

NEPRA observed that the required plant-wise details and supporting workings had not been provided. However, considering that the requested adjustment would provide greater relief to consumers, the regulator provisionally allowed the claimed negative adjustment of Rs10.617 billion and directed CPPA-G to submit supporting details with its next monthly FCA petition.

The authority also examined transmission and transformation losses reported by NGC and CPPA-G. NGC reported transmission and transformation losses of 427.921 GWh, including 51.894 GWh associated with the PMLTC HVDC line.

NEPRA capped the applicable transmission losses at the approved level of 2.50 per cent for the 500kV and 220kV network, while allowing up to 4.3 per cent for the PMLTC HVDC line.

The regulator stated that if NGC remained within the permissible loss percentage on an accumulated basis by the end of the financial year, the impact of deductions made in the September FCA could be allowed through a subsequent positive adjustment.

NEPRA also examined electricity procured through net metering and bilateral arrangements with small power producers and captive power producers.

CPPA-G reported 170.389 GWh of electricity procured from net metering and net billing consumers during September, including electricity imported from distributed generation facilities exceeding their approved capacity.

Additionally, around 12.795 GWh was supplied by small power producers and captive power producers having bilateral arrangements with distribution companies.

The regulator directed distribution companies to reconcile electricity procured through bilateral contracts and provide complete monthly details of energy and associated costs for inclusion in future FCA petitions.

The companies were also required to certify that electricity procured through bilateral arrangements had been purchased in accordance with the Economic Merit Order and NEPRA-approved rates.

The authority calculated the national average FCA at Rs2.3673 per unit after accounting for electricity procured through CPPA-G, bilateral contracts and net metering within the respective baskets of distribution companies.

NEPRA directed CPPA-G to ensure inter-DISCO settlement of the FCAs worked out for individual distribution companies and the uniform FCA charged from consumers, in order to properly account for the energy and cost of each distribution company.

The regulator further clarified that CPPA-G would remain responsible for any variation, error, omission or misstatement identified subsequently, with the resultant amount to be adjusted in future monthly FCAs.