ISLAMABAD: After charging a positive fuel cost adjustment (FCA) of Rs1.63 per unit in the current month, the power companies have sought to extract another Rs1.64 per unit from consumers across the country in April bills, as demand rose.

The Central Power Purchasing Agency (CPPA) demanded payment of higher fuel costs on account of power consumed in February, even though more than 75 per cent of power generation came from domestic, cheaper sources. Electricity consumption was reported to be around 11.42pc higher than in the same month last year but about 15pc lower than in January.

Once approved, the power companies would charge an additional amount of about Rs12.2bn to consumers of all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of April. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on March 31 to examine the request for additional FCA charges to consumers.

The CPPA, which filed the petition for a higher FCA for February consumption, said power consumption was around 11.4pc higher year-on-year and about 15pc lower month-on-month.

The power companies have claimed an average fuel cost of Rs8.37 per unit for February compared to Rs8.23 per unit in the same month last year. The CPPA reported that 7,427 billion units (gigawatt-hours) were delivered to Discos in February, compared with 8,762 GWh in January. The power companies have claimed that the average fuel cost amounted to Rs8.37 per unit in February against a pre-approved reference fuel cost of Rs6.74 per unit, there is a need for about Rs1.64 per unit additional FCA.

The CPPA said about 7,696 GWh of electricity was generated in February at an estimated fuel expenditure of Rs62.75bn (Rs8.15 per unit), of which 7,427 GWh of energy was delivered to Discos at a cost of Rs62.2bn (Rs8.37 per unit), leading to a higher fuel cost over what was already charged to consumers in February bills.

Hydropower recovered its top position among fuel sources contributing to the national grid, with an over 23pc share after the annual canal closures in December and January, but remains below its full potential. The hydropower had contributed only 8pc electricity to the grid in January.

This was followed by nuclear power, with its 18.83pc share in February, compared to 17.5pc in January, when a few power plants were on forced outage or undergoing annual refuelling.

Local coal-based power generation stood third with a 16pc share of the national grid supply in February, followed by almost 15pc from imported coal-based generation. Then came local gas-based generation with 11.52pc share, followed by Regasified Liquefied Natural Gas (RLNG) based power generation at 9.47pc share, a massive fall from its 22pc contribution in January.

There was no furnace oil- or diesel-based generation in February, unlike January, when 3pc of the generation came from furnace oil. RLNG-based generation was the most expensive at Rs23.21 per unit, followed by Rs13.59 from local gas, Rs13.56 from imported coal, and then Rs12.22 per unit from local coal.

The nuclear fuel cost amounted to Rs2.50 per unit in February, up from Rs2.23 in January and Rs1.82 in February of last year. The three renewable energy sources — wind, bagasse and solar — together contributed 5.63pc share to the grid. Wind and solar have no fuel cost, while fuel cost from bagasse-based plants stood at Rs10.39 per unit with just 1.19pc contribution to the grid. The cost of bagasse-based fuel has almost doubled from Rs5.96 per unit in February last year. Electricity import from Iran stood at 0.45pc of the total with fuel cost of Rs23.21 per unit.

Published in Dawn, March 19th, 2026