ISLAMABAD: The Central Power Purchasing Agency (CPPA) has sought a nominal 72 paise per unit negative fuel cost adjustment (FCA) to consumers across the country in January bills despite almost 86pc generation from cheaper domestic, predominantly zero-cost fuel sources.

Once approved, the power companies, including ex-Wapda distribution companies (Discos) and K-Electric, would refund through billing adjustment about Rs5.6 billion to consumers in January bills. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on Dec 31 to examine the request for fuel cost adjustment.

The CPPA, which filed the petition for negative FCA for November consumption, said the power consumption was around 1.25pc higher than same month of last year and about 18pc lower than October. It reported that 7,813 billion units (gigawatt hours) electricity was delivered to Discos in November.

The power companies have claimed in their petitions that average fuel cost amounted to Rs6.16 per unit in November compared to Rs8.72 per unit in October and Rs7.23 per unit of November last year. The reference fuel cost for the November was earlier set at Rs6.88 per unit.

The CPPA said about 8,050 GWh electricity was generated in November at an estimated fuel expenditure of Rs50.1bn (Rs6.22 per unit) in November, of which 7,813 GWh energy was delivered to Discos at a cost of Rs48bn (Rs6.16 per unit), leading to a saving of 72 paise per unit to be refunded to the consumers.

Major contribution to the grid came from hydropower which retained its top position with 39pc share in the overall grid, up from 27.4pc in October. The second biggest contribution to the national grid came from nuclear energy at 25pc, up from 22pc a month earlier. This was followed by local coal with 9.34pc share, down from 13pc a month earlier.

The share of RLNG dropped to 8.64pc in November from 19.7pc in October as local fuel availability remained positive and was followed by local gas which contributed 8.4pc share to the overall national supply, down from its 9.16pc share in October. Imported coal contributed 5pc share to the grid.

The RLNG-based power generation turned out to be the most expensive among the major fuels with its cost in November reported at Rs21.58 per unit, followed by Rs17.77 per unit from local coal and Rs14.33 unit from local gas and then imported coal at Rs14.14 per unit. There was no power generation from furnace oil and high speed diesel.

The nuclear fuel cost amounted to Rs2.27 per unit in November. The three renewable energy sources — wind, baggasse and solar — together contributed 3.7pc share to the grid. Wind and solar have no fuel cost, while fuel cost from baggasse based plants stood at Rs10.84 per unit with just 0.94pc contribution to the grid. Electricity import from Iran stood at 0.43pc of the total with fuel cost of Rs22.57 per unit.

Published in Dawn, December 17th, 2025