ISLAMABAD: In a controversial move, the Power Division has blocked a proposed Rs4.69 per unit relief in Fuel Charges Adjustment (FCA) for K-Electric (KE) consumers for April 2025, citing a new government policy aimed at uniform FCA implementation across all electricity users nationwide.
The decision emerged during a National Electric Power Regulatory Authority (NEPRA) public hearing, where Additional Secretary (Power Finance) Mehfooz Bhatti requested deferral of KE’s FCA application. The Power Division submitted a formal request letter dated June 23, 2025, but did not make it public.
NEPRA Chairman Waseem Mukhtar sharply criticized the move, questioning its legality, transparency, and lack of cabinet approval. He emphasized that the FCA, being a pass-through cost, does not burden the federal budget unlike quarterly tariff adjustments.
KE had requested a negative FCA of Rs4.69/kWh—amounting to Rs7.173 billion in consumer relief—while state-run DISCOs were charged a positive FCA of Rs0.93/kWh for the same month. NEPRA officials pushed back against the Power Division’s attempt to delay the process, arguing that such actions damage regulatory credibility.
KE CEO Syed Moonis Abdullah Alvi decried the sudden policy change, noting that KE consumers had historically paid higher FCAs without being offered relief. He labeled the move unfair and damaging to consumer trust.
The Power Division and CPPA-G are currently seeking a re-evaluation of KE’s fuel cost reference, calling it outdated. NEPRA, however, announced it would reconvene next week to further deliberate the matter.
Story by Mushtaq Ghumman
