Power Division blocks KE consumers’ FCA relief citing nationwide equalization policy

ISLAMABAD: The Power Division has blocked a proposed relief of Rs 4.69 per unit in Fuel Charges Adjustment (FCA) for K-Electric (KE) consumers for April 2025, citing a new policy of equalizing FCA across the country.
This development emerged during a public hearing on FCA chaired by National Electric Power Regulatory Authority (NEPRA) Chairman Waseem Mukhtar.
During the session, Additional Secretary (Power Finance) Mehfooz Bhatti requested NEPRA to defer the provisional FCA adjustment hearing until the federal government’s review motion is finalized. However, Bhatti, accompanied by Central Power Purchasing Agency-Guarantee (CPPA-G) representative Naveed Qaiser, did not provide supporting data to justify the deferment request.
The Power Division had written to NEPRA seeking the delay, but the letter was not made public. “We are in an IMF program, and consumers are being burdened,” Bhatti noted.
Chairman Mukhtar expressed strong concerns over the Power Division’s request, questioning the transparency of the regulatory process and the implications for public trust. He raised several questions about the legal basis for deferring the hearing and whether the request came from the federal government or the Power Division. Bhatti clarified that the request originated from the Power Division and that cabinet approval is still pending.
NEPRA Member Legal, Amina Ahmed, also questioned the move and asked whether CPPA-G would continue to provide subsidies to KE. CPPA-G’s Qaiser responded that a subsidy agreement exists with KE. To this, Member Ahmed responded wryly, “You also have agreements with others.”
KE CEO Syed Moonis Abdullah Alvi said that KE would comply with any decision made by the regulator but expressed concern over the policy shift. “In the past, FCA for Karachi consumers was higher than the national average. At that time, the concept of uniformity was not considered,” Alvi said. He added that now that FCA is lower for Karachi, halting the relief would be unfair to the city’s industries and residents.
Following internal consultations, Chairman NEPRA decided to reschedule the hearing for next week.