The Economic Coordination Committee (ECC) of the federal cabinet has approved the uniform application of Fuel Charges Adjustment (FCA) across all electricity distribution companies in Pakistan. This decision aims to eliminate regional billing disparities, ensuring a level playing field for electricity consumers nationwide.
The ECC meeting, chaired by Finance Minister Aurangzeb Khan, endorsed the proposal submitted by the Power Division, which called for harmonizing FCA rates that were previously applied unevenly across DISCOs (Distribution Companies). The new policy ensures that fuel price variations in electricity generation will now impact all consumers equally—regardless of their geographic location.
Officials stated that this move is designed to increase transparency, reduce public grievances, and simplify the tariff structure. Previously, consumers in certain regions, especially those under privately managed or loss-incurring DISCOs, faced higher adjustments, sparking widespread criticism and protests. The new adjustment mechanism will be implemented with effect from the next billing cycle.
While the government maintains that this step is necessary to address structural inefficiencies and ensure tariff equity, consumer rights groups have raised concerns. They argue that the uniform FCA could unfairly burden low-loss areas if inefficiencies in loss-prone regions are not addressed simultaneously.
The National Electric Power Regulatory Authority (NEPRA) will oversee the monthly calculation and application of fuel adjustments based on real-time energy mix data. This includes reliance on imported LNG, furnace oil, hydropower, and renewable sources, each of which contributes differently to the overall cost.
The ECC has also directed the Power Division to accelerate reforms in distribution companies, aiming to improve recovery rates, reduce line losses, and modernize billing systems to complement the new uniform FCA structure.
electricity billing reform, ECC decisions, NEPRA tariff policy
