K-Electric consumers are likely to get a big relief as the company has sought a tariff reduction of Rs7.04 per unit on account of fuel charges adjustment (FCA).
The National Electric Power Regulatory Authority (Nepra) announced in a statement that it would conduct a public hearing on December 27 of a petition filed by K-Electric for the FCA for November 2022. FCA is based on changes in the global prices of fuel and is passed on to consumers under the prescribed rules and regulations of Nepra and the government of Pakistan.
It is approved by Nepra after a thorough review of the data provided for a month during which the fuel charges were recovered from the consumers.
November’s FCA request for over Rs7 per unit came primarily due to the reduction in prices of re-gasified liquefied natural gas (RLNG), furnace oil and electricity purchased from the Central Power Purchasing Agency-Guarantee (CPPA-G) by 18%, 15% and 37% respectively as compared to September 2022.
Earlier this week, Nepra allowed K-Electric to cut its power tariff by Rs2.45 per unit on account of monthly fuel cost adjustment.
At a public hearing held to review K-Electric’s petition for the FCA for October, the regulator initially calculated a reduction of Rs2.15 per unit. However, after a detailed analysis of data and making adjustments, it approved a tariff reduction of Rs2.45 per unit.
For the month of October, K-Electric had requested the regulator to allow the company to return Rs1.883 per unit back to its consumers on account of monthly FCA.
Published in The Express Tribune, December 18th, 2022.
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