Islamabad, April 30, 2025: Electricity consumers may face higher power bills in the coming summer months due to an expected rise in the Fuel Cost Adjustment (FCA), as reduced hydropower output forces greater reliance on expensive thermal generation.
During a public hearing on the March FCA petition filed by distribution companies (Discos), the General Manager of the National Power Control Centre (NPCC) warned that diminishing water levels at Tarbela and Mangla dams, along with the non-operational Neelum-Jhelum project, would lead to increased use of costly fuels in the national energy mix.
Although the Central Power Purchasing Agency Guarantee Limited (CPPA-G) requested a nominal negative FCA adjustment of 3 paisa per unit, the NPCC official clarified that consumers should still brace for a net hike in fuel costs over the summer due to reduced hydroelectric generation.
The cumulative FCA impact, including the already approved 90 paisa per unit for April, May, and June 2025, is expected to result in a net negative adjustment of only 50 paisa per unit—offering limited relief to consumers.
Despite these cost pressures, the NPCC assured that there would be no shortage in overall power generation capacity.
CPPA-G CEO Rihan Akhtar endorsed the NPCC’s assessment and forecast of higher FCA during the warmer months.
Several interveners also voiced concerns during the hearing. Arif Bilwani from Karachi questioned the long-term generation strategy and the transparency of the FCA structure. Another participant, Amir Sheikh, criticized the lack of clarity on gas allocation. He noted that while captive power plants had been compelled to switch to the national grid—freeing up domestic gas and RLNG from Sindh and KP—this gas had not been redirected to independent power producers (IPPs) or other industries. As a result, industries have not seen a corresponding increase in Fuel Price Adjustment (FPA) refunds.
He further demanded transparency, asking, “Where is the diverted gas going if not to the power or industrial sectors?”
