Nepra approves KE’s request for Rs10.80/unit cut in FCA for December

KARACHI: The National Electric Power Regulatory Authority (Nepra) conducted a public hearing on Tuesday, on K-Electric’s request for a reduction of Rs10.26/unit on account of fuel charge adjustments (FCA) for December 2022, a statement said.

The regulatory authority indicated giving a relief of Rs10.80 to the consumers. A detailed decision in this regard will be issued after scrutiny from the regulator.

The FCA is reviewed every month as per the tariff regime applicable across the country and is usually applicable on the consumers’ bills for a month only.

The FCAs are linked with the changes in the global fuel prices and passed onto the consumer bills under the prescribed rules and regulations of Nepra and the government of Pakistan.

The FCA request for December was lower, primarily due to a reduction in the prices of the regasified liquefied natural gas (RLNG), furnace oil and power purchased from the CPPA-G by 17 per cent, 15 per cent and 29 per cent, respectively, compared with September 2022 and better utilisation of the generation mix.

For the last couple of months, downward trends in the prices of fuels have enabled the KE to pass on the benefits of negative FCA to the customers.

As per the Nepra guidelines, after scrutiny of the KE’s submission, the authority will issue instructions on the period during which these costs can be applied to the consumer bills. The FCA for December is likely to apply in February 2023 bills.