K-Electric seeks Rs4.98 decrease in power tariff under FCA

KARACHI: K-Electric (KE) submitted a provisional monthly fuel charge adjustments (FCA) request for November 2024, to be translated as a relief of PKR 4.98 per kWh (Kilowatt hours) for customers.

“Following a public hearing scheduled for January 15, 2025, the National Electric Power Regulatory Authority (NEPRA) will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable”, KE said in a statement.

On account of the November FCA, The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a negative adjustment of 0.63 paisa per unit in XWDiscos’ tariffs.

KE said that this is the third consecutive FCA being passed on as a benefit to KE customers, with September FCA as 0.16 paisa, and October FCA as 0.27 paisa.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity and the changes in generation mix.

When fuel prices rise, adjustments are reflected in bills, and similarly, when fuel prices decrease globally, the relief is passed on to the customers in the form of reduced FCA.

All FCAs are calculated in accordance with the regulatory guidelines and reflected in customer bills following NEPRA’s scrutiny and approval, the statement further said.

Earlier, A local court in the city imposed a fine of Rs4.81 million on K-Electric (KE) for the electrocution of a child to death in 2017.

Senior Civil Judge East Ambreen Jamal found K-Electric guilty of negligence and failing to implement adequate safety measures to protect citizens, ordering the KE to pay Rs4.819 million in compensation to the heirs of Azhan.

Azhan, an 8-year-old child, died in 2017 after he was electrocuted by a live wire that broke from the K-Electric’s pole during the rainfall in Karachi.