Pakistan’s power regulator approved a negative fuel cost adjustment of about Rs2.32 per unit for consumers of ex-WAPDA distribution companies for electricity consumed in December 2022.

The National Electric Power Regulatory Authority (NEPRA) calculated the adjustment after reviewing fuel costs for the month. The reduction was intended to be reflected in subsequent consumer bills under the monthly fuel cost adjustment mechanism.

What did NEPRA decide?

During its review of December 2022 fuel costs, NEPRA calculated a negative fuel cost adjustment of approximately Rs2.32 per kilowatt-hour for ex-WAPDA distribution companies. A negative adjustment means eligible consumers receive a reduction rather than an additional fuel-cost charge for the relevant billing period.

The adjustment related specifically to fuel costs for electricity generated and supplied during December 2022. It was not a permanent reduction in Pakistan’s base electricity tariff.

Who was covered?

The decision concerned consumers served by ex-WAPDA distribution companies and was subject to the applicable rules and consumer-category exclusions in force at the time. K-Electric was considered separately under its own fuel cost adjustment proceedings.

Why do fuel cost adjustments change?

Monthly fuel cost adjustments reflect differences between reference fuel costs built into electricity tariffs and the actual cost of fuel used to generate electricity. Changes in fuel prices and the electricity generation mix can therefore result in either additional charges or reductions in later bills.

Historical context

This article concerns NEPRA’s consideration of the December 2022 fuel cost adjustment in early 2023. It does not describe current electricity tariffs or current consumer bills.