NEPRA allows KE to recover FCAs in four months

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has issued its decision on the provisional monthly fuel charges adjustments (FCA) requested by KE for the period from July 2023 to March 2024.

The authority has decided to stagger the recovery of these FCAs in consumer bills over a period of four months i.e. from June to September 2024.

The mechanism governing the calculations for FCA is outlined in the Multi-Year Tariff (MYT) for Distribution Companies. Since K-Electric’s MYT petition for control period FY24 to FY30 is currently under deliberation, KE requested NEPRA for directions on passing on the FCA costs for the period from July 2023 to March 2024 to customers in their bills. The hearing on the matter was conducted by NEPRA on May 9, 2024, and included detailed discussions on the variations in fuel costs incurred by KE during the specified period.

These adjustments account for global changes in fuel prices and KE’s energy mix. Pertinent to note that during the first 9 months of FY24, customers of other DISCOs in the country have already undergone a similar process of paying FCA on a monthly basis, with an average rate of approximately PKR 2.89/ unit. In comparison, KE’s provisional FCA during the same period is approximately PKR 1.26/ unit on average.

The decision specifies the following FCA rates, which will be applied progressively to customer bills over the next four months:

June 2024 Bills: PKR 2.6761/kWh (pertaining to Oct 23 and Feb 24)

July 2024 Bills: PKR 3.1057/kWh (pertaining to Jul 23 and Sep 23)

August 2024 Bills: PKR 3.2242/kWh (pertaining to Aug 23, Nov 23, and Dec 23)

September 2024 Bills: PKR 0.9980/kWh (pertaining to Jan 24 and Mar 24)

These adjustments are part of the regular process to align the cost of electricity with actual fuel expenses, ensuring transparency and fairness in energy billing. Customers also receive a benefit in their bills when global fuel prices decrease.

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