Power firms seek to refund Rs7.2bn

Amid a major drop in demand, public sector power companies have sought a 57 paise per unit negative fuel price adjustment (FCA) in electricity bills to refund Rs7.2 billion overcharged to consumers last month. This will be the second month in a row that FCAs remain negative, mainly because of robust fuel allowances allowed by the National Electric Power Regulatory Authority (Nepra) through a 20pc increase in base tariff effective from July 1 to June 30, 2025. Almost 79pc of the total power supply during the month flowed from domestic fuel sources, more than half at zero fuel cost. Last month, the regulator had approved a 37 paise per unit negative FCA adjustment for consumption in July. However, since the FCA is only for one month, the 37 paise relief would be replaced by 57 paise with Nepra’s approval.