KARACHI: K-Electric has submitted a provisional monthly Fuel Charge Adjustment (FCA) request for January 2025, proposing a relief of Rs4.84 per kWh for consumers.
Following a public hearing, the National Electric Power Regulatory Authority (NEPRA) will determine the final FCA amount to be reflected in customer bills and the applicable period.
Additionally, NEPRA has approved KE’s December 2024 FCA request, allowing a relief of Rs3.00 per kWh, which will be adjusted in March 2025 bills. However, NEPRA has provisionally retained Rs2.01 billion for adjustments related to partial load, open cycle, degradation curves, and startup costs. These deductions align with NEPRA’s Generation Tariff decision for the control period starting July 2023, ensuring consumers are not burdened with additional charges later.
Fuel charge adjustments account for fluctuations in global fuel prices and changes in the energy generation mix. These variations impact power production costs and are reflected in consumer bills after NEPRA’s scrutiny. When fuel prices decline, customers benefit from negative FCA adjustments.
Electricity tariffs applied to consumer bills are determined by NEPRA and implemented by the Federal Government. According to NEPRA’s decision, the FCA will be applicable to all consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and prepaid electricity consumers who opted for a prepaid tariff.
