K-Electric has submitted a petition for the positive FCA for the month of January at a cost of PKR 2.69/kWh.
The petition filed by K-Electric regarding Fuel Charges Adjustments (FCA) for January 2023 and Quarterly Adjustments for October to December 2022 will be the subject of a public hearing by NEPRA on February 28.
K-Electric has submitted a petition for the positive FCA for the month of January at a cost of PKR 2.69/kWh. These are one-time fees that should only be applied to one monthly bill, in accordance with the applicable laws and regulations.
However, KE has also asked for a reduction of PKR 7.366 per kWh due to quarterly adjustments. As a result of the uniform tariff policy that is in place throughout the nation, the effects of quarterly adjustments are typically not passed on to consumers.
The Federal Ministry of Energy, the Pakistani government, and the NEPRA Authority, however, have final say. Utilities pay Fuel Charge Adjustments (FCA) because of changes in the generation mix and variations in fuel prices around the world.
These expenses are transferred to the customers in accordance with the policies governing the power sector after review and approval by NEPRA. Reduced fuel prices are also advantageous to consumers. The increase in the cost of power purchased from CPPA-G is the main cause of the positive FCA for January 2023.
In comparison to December 2022, the cost of power from CPPA-G in January 2023 has increased by 67%. According to a KE spokesperson, the regulator, NEPRA, approves FCAs following independent review and public hearings for KE and state-owned entities (XWDISCOs).
In consumer bills, the authority also specifies the month in which the charge is applied. This FCA petition follows the procedure outlined in KE’s Multi Year Tariff for passing through changes in fuel prices, generation, and power purchase mix.
K-Electric (KE) was established in Pakistan in 1913 under the name KESC. The only vertically integrated utility in Pakistan, KE, which was privatized in 2005, provides electricity throughout a 6500 square kilometre territory that includes Karachi and its surrounding areas.