The National Electric Power Regulatory Authority (NEPRA) has issued its decision on K-Electric’s (KE) request for provisional monthly Fuel Charges Adjustments (FCA) for the period from July 2023 to March 2024. The authority has decided to spread the recovery of these FCAs across consumer bills over a four-month period, from June to September 2024. The FCA calculation mechanism follows the Multi-Year Tariff (MYT) guidelines for Distribution Companies.
With KE’s MYT petition for FY24 to FY30 under review, KE sought NEPRA’s guidance on passing the FCA costs for July 2023 to March 2024 to customers. NEPRA held a hearing on May 9, 2024, to discuss the variations in fuel costs incurred by KE during this period, which reflect global fuel price changes and KE’s energy mix.
It’s noteworthy that other DISCOs’ customers have been paying a similar FCA on a monthly basis, averaging around PKR 2.89/unit, while KE’s provisional FCA for the same period averages PKR 1.26/unit.
The approved FCA rates for KE customers will be applied progressively over the next four months as follows: June 2024 Bills: PKR 2.6761/kWh (for Oct 23 and Feb 24). July 2024 Bills: PKR 3.1057/kWh (for Jul 23 and Sep 23).
August 2024 Bills: PKR 3.2242/kWh (for Aug 23, Nov 23, and Dec 23).September 2024 Bills: PKR 0.9980/kWh (for Jan 24 and Mar 24). These adjustments are a routine part of ensuring electricity costs align with actual fuel expenses, promoting transparency and fairness in energy billing.
Consumers will also benefit from lower bills when global fuel prices decrease.
