ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a public hearing on January 31, 2023, on a request submitted by K-Electric (KE) for a reduction in the power price by Rs 10.26 per unit on account of Fuel Charge Adjustments (FCA) for December 2022.
The FCA is reviewed every month as per the tariff regime applicable across the country and is usually applicable to the consumer’s bills for one month only.
The FCAs are linked with changes in global fuel prices and passed onto consumer bills under prescribed rules and regulations of NEPRA and the government of Pakistan.
Sources earlier said that if NEPRA allows the Rs 10.26/unit cut, the total relief in power bills for Karachiites will amount to more than Rs 12 billion. And that this will likely be reflected in the February bills.
According to KE, December’s FCA request was lower primarily due to a better utilisation of generation mix, but more importantly a reduction in prices of RLNG, furnace oil, and power purchased from the central power purchasing agency (CPPA) by 17%, 15% and 29% respectively as compared to September 2022. For the past many months, downward trends in prices of fuels have enabled KE to pass on benefits of negative FCA to customers. In accordance with NEPRA guidelines, after scrutiny of KE’s submission, the authority will issue instructions on the period during which these costs can be applied to consumer bills. The December FCA is likely to apply in February 2023 bills, said KE, in a statement, issued on Monday.