ISLAMABAD: The K-Electric (KE) has requested the National Electric Power Regulatory Authority (NEPRA) to increase the power tariff by Rs 3.09 per kilowatt hour (kWh) on account of fuel charges adjustment (FCA)for the month of July 2024.
As per details, if NEPRA allows KE to charge the Karachiites under FCA of July, the residents of Karachi will face additional burden of Rs6.21 billion for one month.
NEPRA, in a public hearing notice, has announced to hold a hearing on the application of KE on Aug. 29.
On Wednesday, the NEPRA has increased the price of electricity by Rs5.76 per unit on the request of K-Electric in the name of fuel adjustment for the two months of May and June.
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from lower FCA in their bills when global fuel prices decrease.
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.
