The National Electric Power Regulatory Authority (NEPRA) wrapped up a public hearing on Thursday regarding K-Electric’s request for a provisional monthly fuel charge adjustment (FCA) for October 2024. The petition, which seeks relief of Rs 461 million, is expected to lead to a reduction of Rs 0.27 per unit in consumers’ electricity bills. NEPRA is set to issue a final decision clarifying the FCA amount to be passed on to customers, as well as the specific month when it will be reflected in their bills. Fuel charge adjustments are typically based on fluctuations in global fuel prices and shifts in the generation mix.
These adjustments, once approved by NEPRA, are incorporated into customer bills. When global fuel prices decrease, customers benefit from negative FCA adjustments, which help lower their bills. NEPRA determines the applicable rates, which are then announced by the Federal Government. The primary reason for the FCA relief in this case is the decline in international fuel prices, along with a more efficient use of K-Electric’s generation mix. In October 2024, K-Electric optimized its power generation by focusing on economic merit order, ensuring that more efficient power plants were utilized.
