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🏠 Home › MCQs › Pakistan Current Affairs › Question

What is the primary function of the Fuel Cost Adjustment (FCA) mechanism in electricity tariff regulation?

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By Zain

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Published 18 Apr 2026

A. To recover fixed infrastructure and maintenance costs

B. To pass fuel price and fuel-mix variations to consumers

C. To provide permanent subsidies for industrial users

D. To fund the development of renewable energy projects

💡 Explanation:

Fuel Cost Adjustment (FCA) is a regulatory pass-through mechanism that allows utilities to adjust electricity prices based on fluctuations in the actual cost of fuel and the specific fuel mix used for power generation compared to the estimated reference costs.

📚 Topics: Pakistan Current Affairs

🎯 Exams: CSS GEN NTS PMS UK_CS US_COMP

🏷️ Tags: Economic Governance Energy Policy Public Administration Utility Regulation

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