K-Electric has submitted a provisional monthly fuel charge adjustment (FCA) request for November 2024, proposing a relief of Rs4.98 per kilowatt-hour (kWh) for its customers.
The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on January 15, 2025, to evaluate K-Electric’s proposal.Â
Following the hearing, NEPRA will determine the final FCA amount to be passed on to customer bills and the duration for which the adjustment will apply.
Separately, the Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a negative adjustment of 0.63 paisa per unit in the tariffs of Ex-WAPDA distribution companies (XWDiscos) for November. This is the third consecutive FCA relief for K-Electric customers, following adjustments of 0.16 paisa per kWh for September and 0.27 paisa per kWh for October.
Fuel charge adjustments are a routine mechanism used by utilities to account for global fluctuations in fuel prices and changes in the energy generation mix. When fuel costs rise, these adjustments are passed on to consumers, increasing their bills. Conversely, when global fuel prices decline, utilities provide relief by reducing the FCA, reflected as lower charges in customer bills.
All FCA calculations are conducted in accordance with NEPRA’s regulatory guidelines and are incorporated into customer bills only after the authority’s review and approval.Â
NEPRA’s upcoming decision will clarify the implementation of the proposed Rs4.98 per kWh relief and the timeline for its application.
