Power Division spokesperson clarifies FCA not linked to PM’s relief package

ISLAMABAD: Spokesperson Power Division, in a statement, has clarified that recent media reports have unnecessarily created confusion by linking the positive Fuel Cost Adjustment (FCA) with the electricity relief package announced by the Prime Minister. The two are separate elements within the tariff determination framework and have no direct relationship.

The Spokesperson said Fuel Cost Adjustment (FCA) and Quarterly Tariff Adjustments (QTAs) are routine regulatory mechanisms applied strictly based on actual variations in generation cost and system performance during a given period.

These adjustments may be positive or negative depending upon prevailing fuel prices and electricity generation patterns, and are implemented transparently under the approved tariff regime.

The Spokesperson added that, accordingly, any increase or decrease on account of FCA reflects only month-to-month changes in actual fuel costs and does not constitute withdrawal or reduction of any policy relief.

Similarly, QTAs are periodically applied to reconcile verified cost variations and may offset or moderate the impact of FCA adjustments.

The Spokesperson categorically said that the Prime Minister’s relief of Rs 4.04 per unit forms part of the base tariff and remains fully effective and unchanged. The application of FCA or QTA is independent of this relief and operates as a standard feature of the electricity tariff mechanism applicable to all consumers.

The spokesperson concluded that associating the recent FCA with erosion or reversal of the Prime Minister’s relief package is a mischaracterisation of tariff mechanics.

The announced relief continues to remain in place, while FCA and QTAs are being applied strictly in accordance with actual costs under the established regulatory framework.