NEPRA to conduct public hearing on KE's Petition for June’s fuel charges adjustments

NEPRA has announced to conduct a public hearing on July 28 over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for June 2022.

The utility has sought an increase of PKR 11.38/KWh in its FCA petition for June 2022. As per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.

The major impact on the monthly Fuel cost adjustment of June 2022 is due to an increase in the fuel price increase of Furnace Oil and power purchased from CPPA-G. The price of RLNG in June 2022 has increased by 50% from March 2022. The price of RLNG as at June 2022 is PKR 4,627 / MMBTU as compared to the price of PKR 3,083 / MMBTU in March 2022.

The price of electricity from CPPA-G in June 2022 has increased by 74% from March 2022. The price of power purchased from CPPA-G as at June 2022 is PKR 15.844/KWh as compared to the price of PKR 9.098/ KWh in March 2022.

Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.

After the public hearing and scrutiny, the regulator will make a decision on the request and issue instructions on the period during which these costs can be applied to consumer bills.