FCA of March: Karachiites to bear Rs7,862mn in June 2022

National Electric Power Regulatory Authority (NEPRA) has notified Rs4.8269 per unit for the electricity consumers of K-Electric (KE) on account of Fuel Charges Adjustment (FCA) for the month of March 2022.  

As per details, the Authority (NEPRA) has approved FCA of Rs4.8269 per kWh for the month of March 2022 having an impact of Rs7,862 million, to be recovered in the bills of June 2022 from the power consumers of K-Electric.

NEPRA, in a notification dated May 27, 2022, said that this hike in power tariff shall be applicable to all consumer categories except lifeline consumers and K-Electric shall reflect the fuel charges adjustment in respect of March 2022 in the billing month of June 2022.

“While reflecting the Fuel Adjustment Charges, K-Electric shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” said NEPRA notification.

The notification added that this increase in power tariff shall be shown separately in the consumer’s bill on the basis of units billed to the consumers in the respective month to which the adjustment pertains.

Earlier, KE requested an FCA of Rs5.275 per kilowatt hour (kWh) having an impact of Rs8,592 million and NEPRA conducted a hearing on the matter on April 27, 2022.

According to the NEPRA decision, the Authority noted that the power purchase agreement was signed between National Transmission and Despatch Company Limited (NTDC) and K-Electric on January 26, 2010 for five years for sale/purchase of 650 MW on basket rates. Subsequently, a decision was made by the Council of Common Interest (CCI) in its meeting held on November 8, 2012 with respect to the modalities for withdrawal of electric power from NTDC by the petitioner, wherein it was decided to reduce the supply of energy by 300 MW from NTDC to K-Electric. 

However, the aforementioned decision of the CCI has been impugned by way of suits /petitions by K-Electric in the Honourable High Court of Sindh at Karachi. No new agreement has been signed between K-Electric and NTDC till date, and K-Electric is continuing to draw energy from the national grid, which at present is around 1100 MW.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, (NEPRA Act), the authority has to make adjustments in the approved tariff on account of any variations in the fuel charges on a monthly basis.

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

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