Relief: FCA leads to reduced power rates

The Power Division announced on Thursday that electricity consumers can expect a welcome relief in their electricity rates, thanks to a 41 paisa per unit reduction in fuel cost adjustment (FCA) for actual generation in March 2023.

This significant reduction in rates has been made possible due to the Power Division’s diligent monitoring of fuel consumption, load management, and increased utilisation of indigenous fuel sources.

However, the CPPAG has sought approval from NEPRA for the clearance of outstanding arrears amounting to Rs13.4 billion (Rs1.58 per unit) from June 2021, accumulated during the previous government’s tenure.

The difference between the additional arrears and the negative FCA for March 2023 amounts to Rs0.41 per unit, resulting in a filing of Rs1.17 per KWh in FCA.

NEPRA is scheduled to conduct a public hearing on May 3, after 

which the final FCA for March 2023 will be announced, determining the actual charges to be levied.