Electricity Consumers Face Rs35 Billion Increase in Fuel Cost Adjustment


ISLAMABAD: The Central Power Purchasing Agency (CPPA) has proposed a Rs5 per unit increase in fuel cost adjustment (FCA) for upcoming electricity bills, seeking to generate an additional Rs35 billion for ex-Wapda Distribution Companies (Discos). The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on March 28 to discuss this proposed hike.

The increase in FCA is attributed to higher domestic coal and gas prices, despite cheaper imported fuel prices and a stable exchange rate in February. This development raises concerns about the power sector’s ability to forecast fuel costs accurately.

Electricity consumption in February was 8.5% lower than the same month last year. This proposed FCA hike comes on top of existing increases in annual base tariffs and quarterly tariff adjustments, leading consumers to face higher bills despite lower consumption and a significant share of electricity being generated from local, cheaper resources.

Story by Khaleeq Kiani

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