By SKM
October 29, 2025
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has wrapped up its public hearing on the Central Power Purchasing Agency–Guarantee (CPPA-G)’s petition for the Fuel Charge Adjustment (FCA) for September 2025, where a relief of PKR 0.3681 per unit has been proposed.
The hearing, which drew the attention of power sector stakeholders, focused on a downward adjustment driven by cheaper energy generation during the month. NEPRA is now reviewing the data before announcing its final decision on the FCA rate and the billing period for its implementation.
K-Electric’s Perspective: Parity Through Tariff Rationalization
For K-Electric (KE) consumers, the upcoming FCA carries a particular significance. Under the tariff rationalization mechanism approved by the Economic Coordination Committee (ECC) on August 19, 2025, any FCA determined for the national grid will also extend to KE customers to maintain a uniform tariff structure across the country.
However, as per the arrangement, any differential between the FCA determined for KE and the national FCA will be covered through government subsidy—a key policy measure ensuring Karachi’s consumers are not adversely impacted by variations in cost structures between KE and the rest of the national grid.
A KE spokesperson welcomed NEPRA’s continued commitment to maintaining tariff uniformity, stating that “the subsidy mechanism ensures equitable treatment for consumers in Karachi while aligning with national tariff decisions. The proposed negative FCA will help provide relief to customers in upcoming bills.”
Relief Expected Across Most Categories
Fuel Charge Adjustments (FCAs) reflect the changing cost of fuel used to generate electricity and are adjusted monthly based on global price movements and the generation mix. When international fuel prices dip, consumers benefit through a negative FCA that reduces their payable bills.
According to NEPRA’s initial indication, the negative FCA for September 2025 will apply to all consumer categories except lifeline and domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and prepaid customers.
The regulator’s final decision—expected shortly—will clarify the effective billing cycle and exact adjustment applicable to both national and KE consumers. Ends
