K-Electric seeks FCA of Rs2.69 per unit for Jan

Public hearing of company’s petition to be held on Feb 28

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on February 28 of a petition submitted by K-Electric on account of fuel charges adjustment (FCA) for January 2023 and quarterly tariff adjustment for October-December 2022.

For January, K-Electric has sought a positive FCA of Rs2.69 per kilowatt hour (kWh), according to a statement. According to the prevailing laws and regulations, these are one-time charges that are expected to be applied to only one monthly consumer bill.

On the other hand, K-Electric has requested a reduction in tariff of Rs7.366 per kWh on account of quarterly adjustment.

The impact of quarterly adjustment is usually not passed on to consumers under the uniform tariff policy applicable across the country. However, final decision rests with the Ministry of Energy and power-sector regulator Nepra.

FCA is incurred by power utilities due to global variation in prices of fuel consumed to generate electricity as well as change in the power generation mix.

Under the policies governing the power sector, these costs are passed through to customers following Nepra’s scrutiny and approval. Consumers also receive some benefit when the cost of fuel decreases.

“The positive FCA for January 2023 is primarily due to an increase in the price of power purchased from CPPA-G (Central Power Purchasing Agency-Guarantee),” said the statement.

The price of power purchased from CPPA-G in January 2023 increased by 67% compared to December 2022.

According to a K-Electric spokesperson, FCAs are approved by the regulator, Nepra, after a scrutiny and public hearing, which are held independently for K-Electric and state-owned power distribution companies.

Published in The Express Tribune, February 23^rd, 2023.

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