NEPRA Concludes The Gasoline Cost Relief Hearing On July 25th.

The session on the Central Power Purchasing Agency Guarantee’s (CPPA-G) proposal for monthly Fuel Charge Adjustments (FCA) for July 2025 has been concluded by the National Electric Power Regulatory Authority (NEPRA).

CPPA-G requested a relief of “PKR 1.69 per unit” during the hearings. After the public hearing, NEPRA will make its decision public, stating the applicable billing period and the authorized FCA amount that will appear on customer bills.

In addition to the FCA’s request, it was proposed that K-Electric (KE) customers would also be affected by the notified FCA due to tariff rationalization, which was authorized by the Economic Coordination Committee (ECC) on August 19th, 2025.

Any discrepancy between the monthly FCA rate that was identified for KE and the notified FCA would be provided to KE in the form of a subsidy. Additionally, the Ministry of Energy’s statement states that the standard FCA application will begin in June 2025.

CEO Karachi Electric Moonis Abdullah Alvi said that the company will completely comply with NEPRA’s informed conclusion on the adoption of the standardized FCA when the NEPRA Authority requested for KE’s opinion.

Due to changes in the generating mix and worldwide fluctuations in the cost of fuel used to produce power, utilities must vary their fuel charges.

After being reviewed and approved by NEPRA, these expenses are shown on customer bills. When global fuel costs decline, customers additionally benefit from the adverse FCA on their bills. The Federal Government notifies NEPRA of the rates that are applied to customer bills.

According to the Regulatory Authority’s ruling, all consumer categories will be subject to the negative FCA, with the exception of essential consumers, domestic covered consumers, EVCS, and prepaid energy users from all categories who chose a prepaid rate.