NEPRA CONDUCTED PUBLIC HEARINGS ON KE’S PETITION FOR APRIL’S FCA AND QA FOR JANUARY-MARCH
31 MAY 2023, KARACHI: NEPRA conducted a public hearing on 31st May 2023 for the petition submitted by K-Electric on account of Fuel Charges Adjustments (FCA) for April 2023 and Quarterly Adjustments for January to March 2023.
For the month of April, after hearing KE’s presentation and analysis NEPRA has provisionally presented a reduction of PKR 0.05 per unit, however a final decision will be formally notified as per the regulator’s procedures. As per prevailing laws and regulations, these are one-time charges which are expected to apply on only one monthly bill.
On the other hand, K-Electric had requested PKR 5.170 / kWh rupees on account of Quarterly Adjustments for January -March on which the Authority will decide after due verification and deliberation. The impact of quarterly adjustments is usually not passed to consumers under the uniform tariff policy applicable across the country.
Fuel Charge Adjustments (FCA) are incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. Under the policies governing the power sector, these costs are passed through to the customers for one month only, following NEPRA’s scrutiny and approval. Consumers also receive a benefit when the cost of fuel decreases.
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 square kilometers 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.