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CPPA-G seeks positive FCA adjustment of Rs 2.56/kWh for September 26

by NewzShewz Desk
October 15, 2026
in Energy
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ISLAMABAD: The Power Division has claimed that targeted load management and other measures helped limit the projected Fuel Price Adjustment (FPA) for September 2026 to Rs2.56 per unit, against an estimated Rs5 to Rs6 per unit, saving electricity consumers from an additional burden of up to Rs3.44 per unit.

CPPA-G has shared generation data and cost with NEPRA which will publish in newspapers.

In a statement issued on Thursday, the Power Division said the measures were taken to mitigate the impact of expensive alternative fuels on electricity generation and prevent a sharp increase in monthly fuel price adjustment.

According to the division, the September FPA could have risen to Rs5–6 per unit due to increased reliance on expensive furnace oil and high-speed diesel for power generation. To contain the increase, the government resorted to targeted load management for around two to two-and-a-half hours during September.

The division said the measures were aimed at reducing the use of costly fuels and limiting their impact on electricity tariffs. It added that imported liquefied natural gas (LNG) was also provided to the power sector at domestic gas rates, reducing the burden on consumers by Rs0.83 per unit.

As a result, the September FPA is expected to stand at Rs2.56 per unit, only Rs1.45 per unit higher than the adjustment for August. The total potential financial impact of the September adjustment is estimated at Rs32.7 billion, the statement said.

The Power Division noted that international crude oil prices had surged above $120 per barrel amid a regional conflict, compared with approximately $70 per barrel assumed when the country’s base electricity tariff was determined.

The difference between the crude oil price factored into the base tariff and prevailing international prices has increased the risk of higher fuel costs for electricity generation, particularly if the power sector has to rely more heavily on furnace oil and high-speed diesel.

The division said Pakistan continued efforts to meet its RLNG requirements through available contractual supplies and additional spot cargoes despite Qatar’s declaration of force majeure.

It maintained that RLNG would remain necessary to ensure stability in the power system. Any further reduction in RLNG supplies could increase dependence on expensive furnace oil and high-speed diesel, putting additional pressure on electricity consumers through higher fuel price adjustments.

The Power Division also highlighted the cumulative impact of fuel price and quarterly tariff adjustments during January–August 2026, saying the additional burden on consumers had been restricted to just Rs0.65 per unit.

According to the statement, this increase was equivalent to only 1.9 per cent of the base electricity tariff during the eight-month period.

The division further stated that the additional electricity consumption package for industrial and agricultural consumers had encouraged greater use of electricity supplied through the national grid.

The package was intended to promote electricity consumption by productive sectors, particularly industry and agriculture, while improving utilisation of available capacity in the national power system.

The Power Division maintained that measures to manage fuel costs and ensure the availability of alternative supplies were necessary to contain tariff pressures amid volatility in international energy markets.

However, the final September FPA will be determined through the applicable regulatory process, and the actual amount payable by consumers will depend on the approved adjustment.Ends

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