PM’s Rs4.04 Industrial Relief Part of Base Tariff, FCA Remains Variable: Power Division

ISLAMABAD: The Power Division has clarified that the Prime Minister’s electricity relief package of Rs4.04 per unit for the industrial sector forms part of the base tariff and is not linked to monthly Fuel Cost Adjustments (FCA).

In a statement, the spokesperson rejected certain media reports that attempted to connect the positive FCA adjustments with the relief package announced by Prime Minister Shehbaz Sharif. He emphasized that both components operate independently under the electricity tariff determination framework.

According to the statement, FCA and Quarterly Tariff Adjustments (QTAs) are routine regulatory mechanisms applied strictly on the basis of actual variations in fuel costs, electricity generation patterns, and system performance during a given period.

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

He further clarified that any increase or decrease due to FCA reflects only month-to-month changes in actual fuel costs and does not indicate any withdrawal or reduction of the Prime Minister’s relief package.

Similarly, QTAs are periodically applied to reconcile verified cost variations. These adjustments may either offset or moderate the impact of FCA changes, depending on system performance and regulatory calculations.

The Power Division categorically stated that the Rs4.04 per unit relief remains fully intact as part of the base tariff for the industrial sector. The application of FCA and QTA remains a standard regulatory feature applicable to all electricity consumers and operates independently of policy-based relief measures.

Officials concluded that associating recent FCA adjustments with erosion or reversal of the Prime Minister’s industrial relief package is a misunderstanding of the tariff mechanism. The announced relief continues without change, while regulatory adjustments are applied strictly according to actual cost variations.


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