Overview
- The Central Power Purchasing Agency filed the Rs1.20 per unit fuel cost adjustment request on Friday, July 17, to recover higher fuel bills for June generation.
- The regulator, NEPRA, has scheduled a public hearing in Islamabad for July 29 to examine the filing and will then decide to approve, change, or reject the proposed charge.
- CPPA data show June’s actual fuel cost reached Rs8.90 per unit against a reference cost of Rs7.714, with RLNG-based generation rising to about Rs35 per unit from roughly Rs16 a year earlier.
- If authorised through the monthly FCA mechanism, the addition would apply nationwide, including Karachi, and is estimated to add about Rs15.7 billion to consumer bills affecting ex-Wapda distribution companies and K-Electric customers.
- June demand was 13,066 million units and hydropower supplied roughly 39% of generation, so the proposed recovery reflects higher prices for imported fuels rather than a shift to costly domestic generation and will be a key point of scrutiny at the hearing.