ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a Rs 10.80/unit cut in the power price for consumers of K-Electric (KE) on account of fuel charges adjustment (FCA) for the month of December 2022, and issued a notification in this regard on February 9.
According to the notification, this cut in electricity price shall be applicable to all the consumer categories except domestic consumers using upto 300 units, agriculture consumers and Electric Vehicle Charging Stations (EVCS) consumers of KE.
“It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level,” reads the NEPRA notification.
It also said that the KE shall reflect the FCA in respect of December 2022, in the billing month of February 2023.
Also, while effecting the FCA, K-Electric Ltd. shall keep in view and strictly comply with the orders of the courts notwithstanding this order, the notification added.
According to sources, Karachiites will receive more than Rs 12 billion worth relief in February’s power bills with effect to Rs 10.80/unit cut in power price on account of FCA for the month of December 2022.
On January 31, 2023, NEPRA conducted a hearing on the application of KE to decrease the power price, and considered the variation in FCA of December 2022. After an initial scrutiny of the data, NEPRA hinted at the approval of Rs 10.80/unit cut in the power tariff for the consumers of KE.
This hearing was chaired by NEPRA Chairman Tauseef H. Qureshi while NEPRA members, Engineer Rafique Ahmed Shaikh, and Engineer Maqsood Anwar were in attendance.
According to KE, December’s FCA request was lower primarily due to a reduction in prices of RLNG, furnace oil, and power purchased from CPPA-G by 17%, 15%, and 30% respectively as compared to September 2022, along with a better utilisation of generation mix.
It is pertinent to mention that the FCA is reviewed every month as per the tariff regime applicable across the country and is applies to the consumer’s bills for one month only.
FCAs are linked with changes in global fuel prices and passed onto consumer bills under the prescribed rules and regulations of NEPRA and the government of Pakistan.