Power tariff likely to rise by 26 paise per unit in December

The National Electric Power Regulatory Authority (Nepra) on Tuesday noted that the negative fuel cost adjustment (FCA) requested by ex-Wapda distribution companies (Discos) would actually result in an average tariff increase of 26 paise per unit in December. A senior Nepra official told a public hearing that the Central Power Purchasing Agency (CPPA) sought Rs1.02 per unit negative FCA for the electricity consumed in October. However, with the current negative FCA of Rs1.28 per unit applicable in November set to expire, the replacement adjustment would effectively increase fuel costs by 26 paise per unit in December. CPPA representatives stated that the actual power supply in October was 0.03 per cent higher than the reference fuel cost adjustment and 6.8pc higher than the same month last year. This will be the fourth month in a row that FCAs remain negative, mainly because of substantial fuel allowances allowed by Nepra through a 20pc increase in base tariff effective July 1, 2024, to June 30, 2025. More than 71pc of the total power supply during the month came from domestic fuel sources, with almost half at zero fuel cost.