Karachi May 19th, 2023: NEPRA to conduct a public hearing on 31st May 2023 over 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, K-Electric has requested a positive FCA at a rate of PKR 0.489/kWh. 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 has requested PKR 5.170 / kWh rupees on account of Quarterly Adjustments for January -March. 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.
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 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.