KE seeks tariff hike under fuel charge adjustments

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) concluded its hearing on K-Electric’s (KE) request for Rs 0.51 per unit hike under monthly fuel charge adjustments (FCA) for August 2024.

The NEPRA will issue its verdict following the public hearing, to clarify the FCA amount to be passed on to customer bills and the period for which they will be applicable.

The K-Electric also requested the NEPRA for Rs 3.09 per unit increase for July 2024 and the hearing for the request has already been concluded on August 29 while a decision is awaited on the final amount and which month they will reflect in customer bills.

“By comparison, KE’s request for August 2024 reflects a net decrease of PKR 2.58 rupees per unit as compared to its requested FCA for July 2024,” the power utility said in a statement.

“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.”