NEPRA conducted a public hearing over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for May 2022. Per applicable tariff across the country, fuel adjustment is reviewed every month by the Regulatory Authority and is applicable on consumer bills for only one particular month.
KE has requested for an increase of PKR 11.33/kWh on account of increased costs of Furnace Oil and RLNG.
The price of Furnace Oil in May 2022 has increased by 38% from March 2022 while the price of RLNG between March to May 2022 has increased by 50%. Cost of electricity from CPPA-G in May 2022 also increased by 53%.Fuel Charge Adjustment (FCA) are incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers under the governing rules and regulations following NEPRA’s scrutiny and approval. Consumers also receive a benefit when the cost of fuel decreases.
