Nepra reduces FCA for September

KARACHI: The National Electric Power Regulatory Authority (Nepra) has decided to reduce K-Electric’s Fuel Charge Adjustments (FCA) for September at a rate of Rs5.13/unit which will reflect in consumer bills for November 2022, a statement said.

The authority issued the decision on K-Electric’s petition for reduced FCA for September 2022. FCAs are approved by the Nepra after review, who also specifies the month during which the charge is applied in consumer bills.

FCA is dependent on the global prices of fuel and are passed on to the consumer bills under the prescribed rules and regulations of the Nepra and the government.

September’s FCA was lower primarily due to a reduction in the fuel prices. The price of power purchased from the Central Power Purchasing Agency (CPPA-G) in September decreased 37 per cent from June 2022. Similarly, for regasified liquefied natural gas (RLNG), the price in September declined 13 per cent from June 2022.

K-Electric is a public listed company incorporated in Pakistan in 1913, as KESC. Privatised in 2005, the power utility company is the only vertically integrated utility in Pakistan supplying electricity within a 6500km square territory including Karachi and its adjoining areas.

The majority shares, 66.4 per cent, of the company are listed in the Pakistan Stock Exchange owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

The government of Pakistan is also a minority shareholder, holding 24.36 per cent in the company.