KE consumers to receive Rs6.62/unit relief

NEPRA to hear K-Electric's fuel charges adjustment plea on April 16

ISLAMABAD:

The electricity consumers of Karachi are set to enjoy a relief of Rs6.62 per unit in electricity bills on account of Fuel Charges Adjustment (FCA) for the month of February 2025.

The KE consumers have been enjoying a relief in prices of electricity for the last few months due to a reduction in the prices of energy being used in electricity generation.

The latest proposed adjustment reflects continued fluctuation in energy prices, offering further respite in the form of lower charges.

According to details, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing for April 16 to consider KE's request for a provisional negative FCA of Rs6.62 per unit for February 2025.

Sources reveal that KE has submitted the FCA petition using the interim reference tariff from March 2023, reporting a negative variation of Rs6.662 billion in fuel costs during the month in question.

KE has further requested that NEPRA consider the adjustment of pending actualised fuel cost components—related to partial load, open cycle operations, degradation curves, and startup costs—accumulated from July 2023 to February 2025.

KE claims that Rs13.9 billion remains unadjusted, of which Rs7.4 billion was already set aside in FCA decisions for November and December 2024.

The power utility has urged NEPRA to allow recovery of the remaining adjustment from the negative FCA amounts of January and February 2025, arguing that this would avoid placing a financial burden on consumers at a later stage.

NEPRA has identified three key issues for deliberation during the upcoming hearing on K-Electric's FCA request.

These include whether the requested negative fuel charges adjustment for February 2025 is justified, whether KE adhered to the merit order in dispatching electricity from its own power plants and procuring power from external sources.

In addition, it has also urged deliberation on whether the utility's request to adjust actualised fuel costs—arising from partial load operations, open cycle usage, degradation curves, and startup costs—from July 2023 to February 2025, is justified under the prevailing regulatory framework.

NEPRA has invited the interested stakeholders to submit written or oral comments, and the details of KE's petition, relevant rules and determinations are available on NEPRA's website.