July FCA: CPPA-G seeks Rs1.70 negative adjustment

ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought negative adjustment of Rs1.70 per unit in Fuel Charges Adjustment (FCA) for July 2025 to refund Rs23 billion for consumers across the country including K-Electric.

The Nepra is scheduled to hold a public hearing on August 28, 2025 to seek further explanation from CPPA-G and give opportunity to consumers’ representatives to express their views on FCA adjustment data.

According to the data submitted to Nepra, in July 2025 hydel generation was recorded at 5,668 GWh – 40.13 percent of per cent total generation.

Uniform FCA: ECC unimpressed by Nepra’s viewpoint

Power generation from local coal-fired power plants was 1,503 GWh in July 2025 which was 10.64 percent of total generation at a price of Rs11.3477 per unit, whereas, 1,140 GWh was generated from imported coal at Rs14.4986 per unit. Generation from HSD zero, whereas, 108 GWh were produced on RFO at a rate of 31.0533 per unit.

Electricity generation from gas-based power plants was 1.093 GWh (7.74 percent) at Rs13.3791 per unit. Generation from RLNG was 2,438 GWh (17.26 percent of total generation) at Rs 22.0310 per unit.

Electricity generation from nuclear sources was 1,405 GWh at Rs2.4210 per unit (9.95 per cent of total generation), and electricity imported from Iran was 36 GWh at Rs24.1492 per unit.

The CPPA-G, in its data has not mentioned numbers of generation from baggasse but sought adjustment of Rs348 million as per revised pacts.

Previously, the CPPA-G had revised tariffs of bagasse to Rs9.8651 per unit from approximately Rs5 per unit. Energy generation from wind was recorded at 592 GWh (4.19 per cent) of total generation.

According to the CPPA-G, energy generated in July 2025 stood at 14,123 GWh at a total price of Rs109.894 billion which was Rs7.7811 per unit.

However, after inclusion of Rs3.883 billion of previous adjustments at Rs0.2750 per unit d Rs1.923 billion negative adjustment as sale to IPPs and transmission losses of negative 409 GWh, the net delivered to Discos was recorded at 13,666 GWh at a rate of Rs8.1848 per unit.

The CPPA-G argued that since the generation cost in July 2025 was recorded at 8.1848/kWh against the reference rate of Rs9.8758/kWh, hence a negative adjustment of Rs1.6911/kWh for all categories of consumers should be approved.

According to CPPA-G, Power Division, in its letter of August 20, 2025, has submitted that Economic Coordination Committee (ECC) of the Cabinet on August 19, 2025, considered its summary with the following policy guidelines for approval of Cabinet; (i) in order to maintain uniform tariff across the country, NEPRA shall determine application of fuel Charges Adjustment (FCAs) of Discos on KE consumers by way of tariff rationalisation; (ii) NEPRA shall determine the same tariff rationalisation for K-Electric consumers as determined for Discos consumers, with same application period, keeping in view financial sustainability of the sector and uniform tariff policy of the Federal Government; (iii) any difference between the monthly FCA rate determined for K-Electric and notified FCA be made available to K-Electric byway of subsidy or cross subsidy; and iv) the uniform FCA application shall start from DISCOs FCA month of June 2025 to be charged in billing month of August2025.

The Power Division has further submitted that considering urgency of the matter and in anticipation of process of FCA to be initiated by the NEPRA, consideration of the ECC is conveyed for further necessary action at the NEPRA end.

Copyright Business Recorder, 2025