ISLAMABAD: The government has contained the fuel cost adjustment (FCA) for electricity consumption in September at Rs2.56 per unit, compared with an earlier projection of Rs5 to Rs6, preventing an additional burden of up to Rs3.44 per unit on consumers, the Power Division said on Thursday.
According to the division, the reduction was achieved through targeted load management and measures to limit electricity generation from expensive fuels, including furnace oil and high-speed diesel.
The Power Division said limited load management was carried out for approximately 2 to 2.5 hours during September to reduce reliance on costly alternative fuels. Without these measures, the monthly FCA could have reached Rs5 to Rs6 per unit.
The government also reduced costs by supplying imported liquefied natural gas (LNG) to power plants at rates applicable to locally supplied gas. The measure lowered the cost burden on consumers by around 83 paisa per unit.
As a result, September’s FCA is expected to be Rs1.45 per unit higher than August’s adjustment, with the total financial impact estimated at Rs32.7 billion, according to the Power Division.
The division said the measures were necessary amid a sharp increase in international crude oil prices, which rose above $120 per barrel due to regional conflict. This compared with an oil price assumption of approximately $70 per barrel when the country’s base electricity tariff was determined.
The government’s measures were aimed at limiting the impact of rising global fuel prices on electricity consumers.
