NEPRA concluded its public hearing on Wednesday on KE’s request for an increase of Rs 4.49 per unit on account of Fuel Charge Adjustments (FCA) for March 2023. FCAs are linked with changes in global fuel prices and generation mix used for energy generation and passed onto customer bills under the prescribed rules and regulations. March’s FCA request was higher primarily due to an increase in RLNG cost by SSGC and PLL by 14% and 20% respectively as compared to December 2022.
Similarly, the cost of power purchased from CPPA-G has also increased by 41%, while furnace oil prices decreased by 10%. NEPRA scrutinized KE’s request and will issue a final decision on the amount to be passed on to customers as per its protocol.
NEPRA and the Government of Pakistan have developed the governing policies and regulations which determine the costs recovered from customers in their monthly bills. Individual Distribution Companies cannot influence the process or make unilateral changes. The authority also specifies the month during which the charge is applied in consumer bills. This FCA petition is in line with the mechanism given in KE’s Multi Year Tariff whereby changes in fuel prices, generation and power purchase mix are passed through.