KARACHI: K-Electric submitted provisional monthly fuel charge adjustments (FCA) request for February 2025, to be translated as relief of PKR 6.62 per kWh for customers. Following a public hearing scheduled for April 16,2025, 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.
It is pertinent to note that this is the sixth consecutive FCA being passed on as a benefit to KE customers, with September 2024 FCA as 0.18 paisa, October FCA as 0.49 paisa, and November FCA as 1.23 rupees, December as 3.0 rupees, and January as 3.02 rupees.
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. When fuel prices rise, adjustments are reflected in bills, and similarly, when fuel prices decrease globally, the relief is passed on to the customers in the form of reduced FCA.
KE has also highlighted the adjustments regarding part load, degradation curves, startup costs pursuant to determination of Generation Tariff of Powerplants of KE for the period post June 2023 and requested NEPRA to consider the recovery of the same from negative fuel cost variation to ensure that consumers are not burdened at later stage.
All FCAs are calculated in accordance with the regulatory guidelines and reflected in customer bills following NEPRA’s scrutiny and approval.
