K-E seeks Rs 6.62 per unit relief for consumers

KARACHI: K-Electric (KE) has submitted a request for a fuel charge adjustment (FCA) relief of PKR 6.62 per unit for February 2025.

The proposal of FCA Relief, if approved by the National Electric Power Regulatory Authority (NEPRA), will provide financial relief to KE consumers.

A public hearing is scheduled for April 16, 2025 in this regard, where NEPRA will review the request and determine the final fuel charge adjustment (FCA) amount to be reflected in consumer bills.

This marks the sixth consecutive FCA adjustment benefiting KE customers. Previous adjustments include 0.18 paisa in September 2024, 0.49 paisa in October, 1.23 rupees in November, 3.0 rupees in December, and 3.02 rupees in January.

These adjustments are made in response to fluctuations in global fuel prices and changes in the power generation mix.

KE has also highlighted the need for adjustments related to part load operations, degradation curves, and startup costs following the determination of generation tariffs for its power plants post-June 2023.

The company has requested NEPRA to consider recovering these costs from the negative fuel cost variation to prevent future financial burdens on consumers.

All FCA adjustments are calculated in compliance with regulatory guidelines and are implemented in customer bills after NEPRA’s scrutiny and approval.

According to reports, Karachi residents may receive a total FCA Relief of over PKR 6.66 billion if the FCA proposal is approved.

KE has also requested adjustments for previously unaccounted generation costs spanning July 2023 to February 2025, amounting to PKR 13.9 billion. NEPRA’s decision on April 16 will determine the final impact on consumer bills.

What is Fuel charge adjustments (FCA)?

Fuel charge adjustments are a standard regulatory mechanism that allows utilities to pass on the impact of fuel price variations to consumers. When fuel prices decline, the benefit is transferred to customers through reduced FCA rates.