ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a negative fuel charges adjustment (FCA) of Rs 0.0102 per unit for March 2026 for consumers across the country, including those served by K-Electric.
NEPRA held a public hearing on April 28, 2026, on the FCA request submitted by the Central Power Purchasing Agency-Guaranteed (CPPA-G), which had sought a positive adjustment of Rs 0.2660 per unit.
However, after detailed scrutiny, the Authority approved a marginal negative adjustment.
Separate FCAs for each distribution company (DISCO) were worked out after accounting for energy procured from CPPA-G, bilateral contracts (including SPPs/CPPs), and net metering within the respective basket of each DISCO.
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The revised FCA will apply to all consumer categories of K-Electric and WAPDA DISCOs, except lifeline consumers, electric vehicle charging stations (EVCS), and prepaid consumers who have opted for prepaid tariffs.
During the hearing, CPPA-G presented its case, highlighting a 6.38 percent increase in overall power generation in March 2026 compared to the reference tariff assumptions. It also shared details of generation from various sources and their contribution to the overall energy mix.
Regarding K-Electric’s drawl from the National Grid, CPPA-G noted that, had KE not been supplied electricity from the grid, consumer tariffs would have increased by Rs 1.09 per kWh due to FCA and Rs 2.72 per kWh on account of quarterly capacity charges—resulting in a total potential increase of Rs 3.81 per kWh.
Tanveer Barry observed that the reference fuel cost component (FCC) for March 2026 had been revised downward under the calendar year 2026 tariff rebasing, compared to the FCC approved for FY 2025-26. He noted that earlier assumptions were based on low hydrology, which no longer reflects prevailing conditions. The revised reference FCC is more aligned with the actual generation pattern, making the FCA determination reasonable.
Amir Sheikh suggested that the quarterly adjustment for DISCOs for January–March 2026 — expected to be negative — should be processed in May and implemented over June to August 2026 to offset potential positive FCAs in the coming months. NEPRA acknowledged the suggestion as well-founded and indicated efforts would be made to process it accordingly.
Copyright Business Recorder, 2026
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