Power companies seek Rs1.64 per unit fuel cost adjustment for February consumption

ISLAMABAD: Following the imposition of Rs1.63 per unit as positive fuel cost adjustment (FCA) in the current month, power distribution companies have requested an additional Rs1.64 per unit increase to be reflected in April billing, citing a rise in electricity demand.

The Central Power Purchasing Agency (CPPA) filed the petition seeking the higher fuel cost adjustment on account of electricity consumed during February, despite the fact that more than 75 per cent of the country's power generation during the period came from domestic and cheaper sources.

Electricity consumption rises year-on-year

According to the petition, electricity consumption in February was approximately 11.42 per cent higher compared to the same month last year, though it remained about 15 per cent lower than the consumption recorded in January 2026.

If the National Electric Power Regulatory Authority (Nepra) approves the request, power companies would collect an additional amount of roughly Rs12.2 billion from consumers across all distribution companies, including the ex-Wapda Distribution Companies (Discos) and K-Electric, through April bills.

Nepra schedules public hearing

Nepra has scheduled a public hearing on March 31 to examine the CPPA's request for the additional fuel cost adjustment charges to be passed on to consumers.

The fresh petition comes on the heels of the Rs1.63 per unit positive FCA already being charged to consumers this month, adding to the financial burden on electricity users across the country. The CPPA's latest filing seeks to recover the cost of fuel used for power generation during February from all categories of consumers served by both Discos and K-Electric.

The continued requests for upward fuel cost adjustments reflect the ongoing pattern of monthly tariff variations that consumers have been subjected to, with power companies routinely seeking regulatory approval to pass on generation costs to end users through the FCA mechanism.