NEPRA sets Rs2.3673 FCA for September power

NEPRA clears Rs2.3673 per unit FCA for September

The National Electric Power Regulatory Authority has approved a positive Fuel Charges Adjustment of Rs2.3673 per unit for electricity consumed in September 2026. The fuel charge will appear on November 2026 electricity bills as a separate line item and applies to consumers of ex-WAPDA distribution companies and K-Electric under the uniform tariff policy. The adjustment reflects the difference between the actual fuel cost incurred in September and the reference fuel cost already built into tariffs.

NEPRA issued its decision and notification, S.R.O. 2094(I)/2026, on 6 November 2026. The regulator set the actual fuel cost for September at Rs9.8268 per unit against a reference cost of Rs7.4596 per unit, resulting in the Rs2.3673 per unit FCA. The adjustment is lower than the Rs2.5624 per unit initially requested, after the authority reduced certain fuel cost claims and capped transmission losses.

Who pays the September FCA and how it is billed

The September FCA will apply uniformly to all consumer categories of ex-WAPDA distribution companies and K-Electric, except lifeline consumers, electric vehicle charging stations and prepaid consumers who have opted for prepaid tariffs. Units covered under the Incremental Consumption Package are also subject to the FCA. The charge is calculated on the electricity units billed in September 2026, not on units consumed or billed in November.

Consumers can determine the approximate impact by multiplying the September 2026 billed units by Rs2.3673 per unit. For example, a household billed 300 units in September will pay about Rs710 before tax under this FCA. NEPRA has directed distribution companies to clearly show the FCA as a separate line on bills, and to recover the charge in the subsequent billing month if some November bills were issued before the notification.

Generation mix shifts and fuel cost dynamics

In its decision, NEPRA reviewed the September 2026 generation mix and fuel price trends that led to the higher average fuel cost. Total electricity generation in the month reached 13.22 billion units, about 0.98 percent above the level assumed in the reference tariff. Hydel, nuclear, local coal and RLNG-based generation all came in below plan, while imported coal, diesel and local gas helped bridge the gap.

Imported coal generation rose from 1.14 billion units in the reference mix to 2.16 billion units in September, with its fuel cost increasing from Rs11.78 per unit to Rs17.23 per unit. RLNG-based generation declined from 1.48 billion units in the reference mix to 0.80 billion units, with fuel cost at Rs39.74 per unit. Gas-based generation increased from 0.76 billion units to 1.07 billion units, while its fuel cost rose from Rs10.42 per unit to Rs13.04 per unit, and high-speed diesel and furnace oil generation carried fuel costs of Rs62.14 and Rs44.86 per unit respectively.

Adjustments for plant costs, losses and prior periods

NEPRA made several adjustments while finalising the September FCA, including reductions in claimed fuel costs for selected power plants. The authority compared the claims with approved fuel cost components and trimmed overall fuel charges, contributing to the cut from the requested Rs2.5624 per unit to the approved Rs2.3673 per unit. It also examined previous-period adjustments amounting to Rs5.759 billion, including actualisations for earlier months and changes related to reduced indigenous gas supplied to RLNG-based plants.

The regulator noted gaps in plant-wise supporting data but provisionally allowed a negative adjustment of Rs10.617 billion, instructing the Central Power Purchasing Agency-Guaranteed to submit detailed workings with the next FCA petition. Transmission and transformation losses reported by the National Grid Company were also reviewed, with NEPRA capping applicable losses at 2.5 percent for the 500kV and 220kV network and up to 4.3 percent for the PMLTC HVDC line. The authority indicated that if losses remain within permissible limits on an accumulated basis by year-end, the impact of some deductions could be restored through a future positive adjustment.

Net metering, bilateral power and inter-DISCO settlement

Electricity procured through net metering, net billing and bilateral contracts was also incorporated into the FCA calculation. CPPA-G reported 170.389 GWh procured from net metering and net billing consumers in September 2026, including imports from distributed generation facilities exceeding their approved capacity. In addition, about 12.795 GWh was supplied by small power producers and captive power producers under bilateral arrangements with distribution companies.

NEPRA directed distribution companies to reconcile energy purchased under bilateral contracts and provide complete monthly details of volumes and costs for future FCA petitions. The regulator calculated the national average FCA at Rs2.3673 per unit after accounting for energy procured through CPPA-G, bilateral contracts and net metering within the respective baskets. CPPA-G has been tasked with ensuring inter-DISCO settlement between the FCAs worked out for individual companies and the uniform FCA charged to consumers, and will remain responsible for any later corrections through future adjustments.

Separate move on industrial tariff and extra November charge

In a separate decision affecting industrial users, NEPRA has raised the special industrial electricity tariff to Rs25.30 per unit. The regulator also allowed distribution companies to add Rs2.37 per unit of electricity to November bills under the monthly fuel cost adjustment mechanism.