ISLAMABAD : The National Electric Power Regulatory Authority (NEPRA) has approved a relief of about Rs 0.79.5 / kWh for the consumers DISCOs and K-Electric (KE) by reducing QTA at Rs 1.9857/ kWh for the first quarter ( Jan-March) 2026 and positive adjustment of Rs 1.19/ KWh for April 2026 under month FCA adjustment mechanism to recover additional amount of over Rs 11 billion.
QTA : DISCOs had sought negative adjustment of Rs 67.173 billion for the first quarter of current year 2026. The hearing was held as per the schedule on May 19, 2026, which was attended by DISCOs, CPPAGL and other stakeholders including general public and media. for working out the instant QTA, the DISCOs adopted different approaches with respect to T&D losses.
Certain DISCOs calculated the QTA based on T&D losses pertaining to CY 2026, while others used the T&D losses applicable to FY 2025-26. Since T&D losses arc assessed and approved by the Authority on a financial year basis, and the reflection of average T&D losses in the calendar year tariff is only for calculation of average consumer-end tariff purposes, therefore, the instant QTA has been worked out using the T&D loss targets approved for FY 2025-26. This approach has been adopted considering that the instant quarter falls within the FY 2025-26 T&D loss target period as per the approved Investment Plan.
Accordingly, for the 1st and 2nd quarters of CY 2026, the relevant T&D losses shall be those approved for FY 2025-26, whereas for the 3rd and 4″1 quarters of CY 2026, the T&D losses approved by the Authority for FY 2026-27 shall be applicable
A commentator, namely Amir Sheikh, requested that the proposed negative quarterly adjustment be implemented in the billing months of May, June, and July so as to neutralize the impact of upcoming positive 1’uel Charges Adjustments (FCAs). Further, he inquired about the reason for the positive claim of capacity charges adjustment by LESCO and HAZECO, despite higher sales. In response, the representative of PPMC explained that as per the prescribed mechanism, the adjustment in capacity charges of a DISCO is a function of maximum demand, for allocation of capacity amount, and total energy purchases by DISCOs, for computation of per kWh rate, during any month. It was further explained that higher allocation of capacity charges (due to hitting higher demand) coupled with proportionately lower energy purchases than the reference levels contributed to the positive capacity charges adjustment of these two DISCOs. He also highlighted that, from the consumers’ perspective, the overall capacity charges adjustment remains negative, which would ultimately benefit the consumer.
Another commentator, namely Rehan Javcd, appreciated the measures taken by various institutions in the power sector, which had led to an increase in electricity demand from the national grid and consequently resulted in the instant negative quarterly adjustments. He also commended the operation of certain efficient power plants on natural gas instead of RLNG, which, according to him, would result in relief in the upcoming FCA, and requested that the same practice continue in the future. In response to his inquiry, the representative of PPMC explained the category-wise changes in sales.
Tanvcer Barry, another commentator, submitted that the proposed relief in terms of quarterly adjustment will offset the positive impact of FCA for April 2026. He also requested that revenue based load shedding should be curtailed in order to avoid fatalities during the forecasted heat wave. In view of the discussion, relevant provisions of NEPRA Act, National Electricity Policy and the policy guidelines issued by the Federal Government, the Authority has decided to allow the application of instant quarterly adjustments on the consumers of K-Electric as well, with the same applicability period. Accordingly, the relief of instant negative quarterly adjustment of (Rs. 1.9857/kWh) shall also be provided to the consumers of K-Electric except life line, Incremental consumption package billed units and prepaid consumers, to be passed in a period of 03 months i.e. June, July and August 2026.
FCA : The hearing in the matter was held on June 02, 2026 at NEPRA headquarters. CPP-G had sought positive adjustment of Rs 1.73/ kWh. Based on foregoing and in light of the earlier decisions, the Authority has calculated the fuel cost for the month of April 2026, after incorporating the aforementioned adjustments, including costs arising from the application of various factors as claimed by CPPAG in its FCA request. The separate FCA for each DISCO has been worked out after accounting for energy procured from CPPAGL, bilateral contracts (SPPs/CPPs), and net metering within the respective basket of each DISCO.
However, in line with the uniform tariff regime envisaged under the NEPRA Act, National Electricity Policy, and Plan, the Authority has also computed a national average uniform monthly FCA to be charged from all consumers of DlSCOs. The Authority, after incorporating the adjustments, has reviewed and assessed a National Average Uniform increase in the applicable tariff for DISCOs on account of variations in the fuel charges for April 2026 which is as follows ;(i) actual National Avg. Uniform Fuel Cost Component (FCC ) for April 2026 was Rs Rs.9.4405/kWh against corresponding reference FCC of Rs 8.2498/ kWh. The adjustment will be applicable to all the consumer categories of KE and DISCOs except lifeline consumers, Electric Vehicle Charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff. It shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of April 2026. In case any bills of June 2026 are issued before the notification of this decision, the same may be applied in the subsequent month.
