Nepra approves 88.16 paisas negative adjustment

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a negative adjustment of 88.16 paisas per unit in the Fuel Charges Adjustment (FCA) for October 2025, resulting in a refund of Rs 8.5 billion to consumers. At the same time, Nepra has approved a positive adjustment of 33 paisa per unit for the first quarter of the current fiscal year (CFY) 2025-26 to recover Rs 6.067 billion.

Nepra conducted a public hearing on the FCA on November 27, 2025, which was attended by representatives of the business community and other stakeholders to meet the principles of natural justice and enable an informed decision.

Commentator Tanveer Barry stated that the rapid increase in net metering installations was primarily driven by high electricity tariffs, which had made grid-supplied electricity less affordable compared to alternative options. He further noted that the seasonal decline in hydel generation during winter months could lead to higher FCAs, as a larger share of demand would need to be met through comparatively expensive thermal generation.

Another commentator, Rehan Javed, inquired about the operation of RFO-based power plants during the month. The System Operator (ISMO) clarified that RFO generation was utilized only at the beginning of the month, when national demand peaked at 22,195 MW (as indicated in paragraph 13 of the decision). Additionally, low hydel indent and the outage of the Huang Shandong Ruyi plant contributed to the need for RFO-based generation during that period.

The CPPA-G reported total transmission losses of 231.964 GWh during October 2025. However, the National Grid Company (NGC) reported provisional T&T losses of 224.082 GWh, or 2.187percent, based on energy delivered on the NGC system during the same period. NGC also reported T&T losses of 25.495 GWh (2.760percent) for the PMLTC (HVDC) line. Thus, NGC requested approval for total T&T losses of 247.208 GWh (net of auxiliary) for October 2025. It is pertinent to mention that under the NGC notified tariff, the allowed T&T loss is 2.639percent for the 500 kV and 220 kV network, and up to 4.3percent for the PMLTC (HVDC) system. Accordingly, the T&T losses of 231.964 GWh reported by CPPA-G, being on the lower side, have been accepted.

Quarterly Tariff Adjustment (QTA) for First Quarter of CFY 2025-26: The Authority has approved quarterly adjustments amounting to Rs 6.067 billion for the first quarter of FY 2025-26, to be recovered over a period of three months — December 2025 to February 2026 — at a uniform rate of Rs 0.3298/kWh. This adjustment will apply to all consumer categories except lifeline and prepaid consumers.

Accordingly, K-Electric consumers—excluding lifeline and prepaid categories — will also be charged the quarterly adjustment of Rs 0.3298/kWh during the same three-month recovery period.

Furthermore, the Authority has directed all DISCOs to submit their quarterly adjustment requests immediately after the close of each quarter to ensure timely processing. XWDISCOs have also been instructed to provide category-wise details of increases or decreases in quarterly sales compared to reference sales, as well as the actual sales for the corresponding period of the previous year, along with each quarterly adjustment request. For industrial consumers, details must be provided separately for each category: B1, B2, B3, and B4.—MUSHTAQ GHUMMAN