KATI Demands Comparative FCA, Capacity Charge, and Net Metering Data to Evaluate Impact on Industrial Consumers

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ISLAMABAD: The Korangi Association of Trade and Industry (KATI) has urged the National Electric Power Regulatory Authority (NEPRA) to provide comprehensive comparative data on Fuel Charges Adjustment (FCA), capacity charges, and net metering to assess their combined financial burden on industrial consumers.

In a letter to Registrar Waseem Bhinder, KATI requested the information ahead of NEPRA’s upcoming FCA hearing for October 2025, scheduled for November 27. The Association noted that it had previously referred to NEPRA’s determination of November 7, 2025, regarding the FCA for September, in which the Authority had directed CPPA-G to respond in detail to stakeholders’ comments and incorporate them in all future FCA proceedings.

Despite this directive, KATI said CPPA-G has failed to provide the required information in the last two FCA hearings, raising “significant regulatory concerns.” The absence of essential data, it stressed, undermines transparency and weakens the ability of industrial consumers to understand the financial implications of the uniform FCA for both Karachi and the Federal Government.

KATI reiterated that the following information must be submitted and placed on record prior to and during the hearing:

Comparative Uniform FCA Analysis:

  1. The FCA applicable to K-Electric consumers without the uniform FCA;
  2. The actual FCA charged under the uniform mechanism;
  3. The resulting difference in terms of subsidy savings or additional costs for the Federal Government and Karachi consumers.

Impact of Additional 2050 MW Supply to KE:

  1. Capacity payments before and after the increased supply;
  2. Reduction in idle capacity payments due to higher off-take;
  3. Whether these avoided costs have been passed on to consumers or remain unallocated.

Net Metering Procurement and Cost Impact:

  1. Month-wise GWh procured by each DISCO through net metering;
  2. The effect on pooled generation cost and the national uniform FCA;
  3. Whether net metering has reduced fuel adjustment charges or if benefits are being internally absorbed.

KATI warned that CPPA-G’s repeated failure to provide the mandated data has already compromised transparency. Continued non-disclosure, it added, may suggest that material information relevant to FCA determinations is being withheld, limiting NEPRA’s ability to assess the fiscal neutrality of the uniform FCA and exposing consumers to distorted tariff adjustments, unplanned liabilities, and inequitable cost transfers.

The Association cautioned that if the required data is again omitted during the November 27 hearing, it will reinforce the perception of opacity in the regulatory process. This may compel KATI to formally request that NEPRA draw an adverse inference, order corrective disclosures, or review the uniform FCA mechanism to safeguard consumer interests.

KATI urged NEPRA to ensure CPPA-G submits complete and accurate information in line with its directives and that the data is officially placed on record during the forthcoming hearing.

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