KE seeks Rs4.84 per unit refund in January FCA

KARACHI: K-Electric submitted provisional monthly fuel charge adjustments (FCA) request for January 2025, to be translated as relief of Rs4.84 per kWh for customers.

K-Electric said “Following a hearing, yet to be announced, 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”.

Additionally, NEPRA has issued its decision regarding KE’s petition of provisional monthly Fuel Charges Adjustment (FCA) requested for December 2024, indicating a relief of PKR 3.00 per kWh. This will be passed on to customers in their March 2025 bills.

K-Electric said in a statement that, NEPRA has provisionally retained an amount of PKR 2.01 billion in respect of adjustments on account of partial load, open cycle and degradation curves along with start up cost pursuant to NEPRA’s Decision regarding Generation Tariff for the control period July 2023 onwards from the FCA for December 2024 to be adjusted against the pending claims of KE to ensure that consumers are not burdened at later stage.

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

These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease.

Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.

As per the Regulatory Authority’s decision, the FCA shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff.