FCA for June: Nepra approves Rs2.56 per unit hike for August power bills

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Thursday approved an increase of Rs2.5627 per unit in electricity bills for consumers, effective in August. This decision will add an estimated Rs33.45 billion to the financial burden on power consumers, a figure that climbs to Rs39.5 billion with the inclusion of 18 percent GST.

The adjustment stems from the fuel charges adjustment (FCA) for June 2024, designed to cover the difference between the actual cost of power generation and previously charged rate. The rise in costs is attributed to the high prices of liquefied natural gas (LNG) and oil, coupled with reduced electricity demand.

The new rate applies to all consumer categories except electric vehicle charging stations (EVCS) and lifeline consumers.

Discos had originally requested permission to impose a Rs2.63 per unit charge, citing a reference fuel cost of Rs7.14 per unit in June, which ultimately increased to Rs9.77 per unit.