NEPRA approves PKR 3.64/unit relief in February FCA

The National Electric Power Regulatory Authority (NEPRA) has announced a relief of PKR 3.64 per kilowatt-hour (kWh) under the Fuel Charges Adjustment (FCA) for February 2025. The adjustment will be reflected in customers’ electricity bills for May 2025.

According to NEPRA, PKR 3 billion has been provisionally retained from the FCA to account for adjustments related to partial load, open cycle operations, degradation curves, and startup costs. The move follows NEPRA’s ruling on generation tariffs for the control period starting in July 2023. The amount will be set off against Karachi Electric’s (KE) pending claims to prevent undue burden on consumers at a later stage.

Fuel charge adjustments are a routine mechanism used to reflect global variations in fuel prices and changes in the energy generation mix. Customers benefit from negative FCAs in their bills when fuel prices decrease. NEPRA determines these charges and the Federal Government notifies them accordingly.

The relief will apply to most consumer categories except lifeline consumers, domestic protected customers, Electric Vehicle Charging Stations (EVCS), and prepaid electricity users who have opted for prepaid tariffs, NEPRA said.