Nepra Approves 33.64 Paisa Per Unit FCA Increase for May

The National Electric Power Regulatory Authority (Nepra) has approved a Fuel Charges Adjustment (FCA) increase of 33.64 paisa per unit for May 2026, applicable to consumers of power distribution companies (Discos) and K-Electric.

 

The Central Power Purchasing Agency-Guaranteed (CPPA-G) had requested a higher FCA of 81.73 paisa per unit, stating that the actual fuel cost for May stood at Rs9.2488 per unit, compared with the reference fuel cost of Rs8.4315 per unit. However, Nepra determined the actual fuel cost at Rs8.7679 per unit, resulting in a lower adjustment of 33.64 paisa per unit.

 

The regulator held a public hearing on June 30, 2026, attended by government officials and industry representatives, including Rehan Javed of the Korangi Association of Trade and Industry (KATI).

 

During the hearing, stakeholders raised concerns over the expected Quarterly Tariff Adjustment (QTA), particularly in light of lower electricity consumption. Questions were also raised about when consumers would benefit from declining international oil prices, lower RLNG terminal charges and the captive gas levy.

 

In response, CPPA-G said the QTA would be finalised after actual data for June 2026 becomes available, adding that the Pakistan Power Management Company (PPMC) does not expect a significant adjustment.

 

The agency also clarified that any reduction in fuel costs would automatically be passed on to consumers through the monthly FCA mechanism in line with the prevailing regulatory framework.

 

On RLNG terminal charge waivers, CPPA-G said it had no information, while noting that the issue of the captive gas levy remains pending before the courts.

 

During the proceedings, Jamaat-e-Islami representative Imran Shahid argued that the increase in the FCA was driven by the underutilisation of lower-cost power plants and the inclusion of part-load charges. The Independent System and Market Operator (ISMO) responded that generation units are dispatched according to system demand, while CPPA-G maintained that part-load charges are recovered under existing contractual agreements.

 

According to Nepra's decision, the 33.64 paisa per unit FCA for May 2026 will be reflected in electricity bills issued to consumers in July 2026.