The Central Power Purchasing Agency (CPPA-G) has submitted a formal petition to the National Electric Power Regulatory Authority (NEPRA) requesting an upward adjustment of Rs 2.524 per kilowatt-hour (kWh) on account of monthly Fuel Charges Adjustment (FCA).
For many electricity consumers in Islamabad, Rawalpindi, and surrounding districts, understanding electricity bills is challenging due to the multitude of terms like Base Tariff, Fuel Charges Adjustment (FCA), Quarterly Tariff Adjustment (QTA), and Financing Cost Surcharge. In this article, we break down CPPA's latest petition and provide a clear comparison of how each billing component functions.
Breakdown of CPPA's Rs 2.52/Unit Petition
According to data submitted by CPPA-G, total electricity generation across the national grid during the evaluation month stood at approximately 13,800 GWh at a total generation cost of Rs 115 billion. The generation energy mix comprised:
- Hydel Generation: 34.5% (Zero fuel cost baseline).
- Nuclear Energy: 15.2% (Low variable fuel cost).
- RLNG (Regasified Liquefied Natural Gas): 20.8% (Impacted by international LNG spot pricing).
- Local Coal & Thar Coal: 12.6% (Moderate indigenous fuel cost).
- Imported Coal: 7.8% (Elevated due to international freight and coal indices).
- Renewables (Solar & Wind): 5.1% (Zero fuel cost).
Because the actual average generation fuel cost of Rs 8.92/unit exceeded the pre-determined reference fuel price of Rs 6.40/unit by Rs 2.52/unit, CPPA is legally required to seek approval from NEPRA to recover this differential.
Key Differences: Base Tariff vs. FCA vs. QTA vs. Surcharges
To help you decipher your duplicate bill, here is a breakdown of how these four components differ:
| Bill Component | Frequency | What It Covers | How Long It Applies |
|---|---|---|---|
| Base Tariff | Annual (Fixed by Federal Govt/NEPRA) | Core cost of generating, transmitting, and distributing electricity across progressive slab tiers. | Permanent baseline until national tariff rebasing. |
| Monthly FCA | Monthly | Variations in actual fuel costs (gas, coal, oil) compared to reference generation estimates. | 1 single monthly billing cycle per determination. |
| Quarterly Adjustment (QTA) | Every 3 Months | Capacity charges, transmission losses, inflation variations, and exchange rate impact. | Distributed across 3 consecutive billing months. |
| FC Surcharge | Continuous | Financing Cost Surcharge levied to service power sector sovereign circular debt loans. | Long-term statutory levy (currently up to Rs 3.23/unit). |
How This Line Item Shows Up on Your IESCO Duplicate Bill
When you check your bill online through our portal, look at the duplicate bill preview. The FPA (Fuel Price Adjustment) is calculated by multiplying your total units consumed in the respective prior month by the approved NEPRA rate.
For full instructions on reading every line of your bill, see our Understanding Your IESCO Bill Guide. To test different monthly unit scenarios with real-time tax additions, launch our IESCO Bill Calculator.