Power suppliers seek negative FCA in upcoming months

The public sector power companies have decided to refund Rs7.2 billion to consumers by providing a slight decline of Rs0.57 per unit of electricity in an account of fuel charges adjustment (FCA).

This will be the second month when FCA rremainsnegative after the continuous increase allowed by the National Electric and Power Regulatory Authority (Nepra) in June and July through a 20 percent increase in base tariff effective from July 1 to June 30, 2025.

During the month, at least 79 percent of the total power generation was made by domestic fuel sources.

Last month, the regulator cut FCA by Rs0.37, which would increase to Rs0.57 with Nepra’s approval. The negative FCA would not be applicable to consumers with consumption.

However, the public hearing of Nepra has been called for September 26. The regulators will hear the petition filed by the Central Power Purchasing Agency (CPPA), seeking a decrease of 0.5755/kWh over the reference fuel charge.

On the other hand, the decline is attributed to the decreasing demand for fuel-generated electricity, as hydroelectricity became a great source of power supply, it increased to 40 percent compared to 37 percent last year.

The second biggest contributor to the power supply is nuclear power at 16.6 percent, followed by LNG with a 16 percent share.