KARACHI – August 11, 2022: NEPRA has announced its decision on K-Electric’s (KE) petition for FCA for the month of June 2022. As per NEPRA’s decision, it has approved an FCA of PKR 11.1023/kWh which will be spread over consumer bills of August and September 2022.
While FCA is normally approved for one month and also applied on a single month’s bill, NEPRA has allowed the PKR 11.1 per unit charge to be split across bills of 2 months. For units consumed in June, consumers will be charged PKR 3.01 per unit in the month of August and PKR 8.09 per unit in the month of September.
Unprecedented increase in the price of furnace oil and RLNG in the global market is the primary driver of this increased FCA. The price of RLNG in June 2022 increased by 50% from March 2022. The price of Furnace Oil in June 2022 increased by 42% from March 2022. Meanwhile, the price of electricity from CPPA-G (National Grid) in June 2022 increased by 74% from March 2022.
Per spokesperson KE “Macroeconomic conditions are causing prices of fuel to increase as well. We appreciate NEPRA for their approval in splitting the recovery of this amount over bills of 2 months which enables KE to pass on some relief to its consumers. It is pertinent to mention that if fuel prices decrease, all consumers also receive a benefit in their bills. Amid these unprecedented circumstances, we reiterate our request to consumers to reduce personal energy consumption by at least 20 percent to conserve this valuable resource.”
About K-Electric
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.