Govt Seeks Slight Tariff Increase in May FCA

Electricity consumers may face a price hike of Rs. 0.10 per unit as the Central Power Purchasing Agency (CPPA) has requested a monthly fuel charges adjustment (FCA) for May 2025. The National Electric Power Regulatory Authority (NEPRA) is scheduled to hear CPPA’s request today. According to the CPPA, over 12.75 billion units of electricity were generated during May at a cost of Rs. 7.49 per unit, against the reference fuel cost of Rs. 7.39 per unit, so an increase is expected. The CPPA report highlights that 37.98 percent of the electricity in May came from hydropower sources, 11.08 percent from local coal, and 6.24 percent from imported coal. Other sources included furnace oil (0.16 percent), local gas (6.92 percent), imported LNG (16.99 percent), and nuclear fuel (15.77 percent). If approved by NEPRA, the FCA will reflect in upcoming electricity bills.