Islamabad, February 27, 2026 – The Power Division on Friday issued a formal clarification to address public confusion arising from recent media reports that linked the Fuel Cost Adjustment (FCA) with the electricity relief package announced by the Prime Minister. Officials emphasized that the two are entirely separate components within the tariff determination framework and have no direct connection.
In a statement, the spokesperson for the Power Division said that certain reports had inaccurately suggested that the recent positive FCA adjustment had diluted or reversed the Prime Minister’s electricity relief measures. “This interpretation is misleading and reflects a misunderstanding of the electricity tariff mechanism,” the spokesperson added.
FCA and QTA Explained
The spokesperson clarified that Fuel Cost Adjustment (FCA) and Quarterly Tariff Adjustments (QTAs) are standard regulatory tools applied strictly on the basis of actual changes in fuel prices, generation costs, and system performance during a specific period.
“These adjustments can be either positive or negative, depending on prevailing international fuel prices and domestic electricity generation patterns. They are implemented transparently under the approved tariff regime and are not linked to any policy relief,” the statement noted.
Similarly, QTAs are periodically introduced to reconcile verified cost variations and may help offset or moderate the overall impact of FCA changes, ensuring a balanced and fair tariff structure.
PM’s Rs4.04 Per Unit Relief Remains Intact
The Power Division categorically stated that the Prime Minister’s electricity relief of Rs4.04 per unit is part of the base tariff and remains fully effective and unchanged.
“The application of FCA and QTA is independent of this relief. These mechanisms operate as standard features of the electricity tariff framework and apply uniformly to all consumer categories,” the spokesperson said.
Misinterpretation of Tariff Mechanics
The statement concluded by stressing that linking the recent FCA increase with any erosion or rollback of the Prime Minister’s relief package is a mischaracterization of tariff mechanics.
“The announced relief continues to remain in place. FCA and QTAs are being applied strictly in accordance with actual costs under the established regulatory framework,” the spokesperson added.
The clarification aims to reassure consumers and dispel uncertainty surrounding electricity billing adjustments, reaffirming the government’s commitment to providing sustained relief amid fluctuating energy costs.