ISLAMABAD: K-Electric has requested the National Electric Power Regulatory Authority (NEPRA) to approve Rs 4.95 per unit cut in power price on account of fuel charges adjustment for the month of December 2024.
According to industry sources, NEPRA scheduled a public hearing on February 26, 2025, to consider the K-Electric’s (KE) request for a provisional negative Fuel Charges Adjustment (FCA) for December 2024.
According to KE’s petition, the negative FCA has been calculated based on the interim reference tariff of March 2023, with a variation of Rs. (4.95)/kWh, translating to a total reduction of Rs. 4.94 billion in fuel costs.
In addition to the FCA adjustment, KE has requested NEPRA to consider an additional adjustment of Rs. 5 billion for fuel costs incurred from July to December 2024.
The power utility argues that this amount is pending due to partial load, open cycle, degradation curves, and startup costs. KE has urged the Authority to allow this adjustment now to prevent a future burden on consumers.
As per details, NEPRA has framed the following key questions for deliberation during the hearing:
- Whether the requested FCA is justified?
- Whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources.
- Is the request of KE to adjust the accumulated actualization of fuel costs—accounting for partial load, open cycle operations, degradation curves, and startup costs from July to December 2024—against the negative fuel cost variation justified?
The hearing will be held at NEPRA Tower and online, allowing interested and affected parties to submit written or oral objections.
It is pertinent to mention that this hearing is significant as it could lead to lower electricity costs for Karachi consumers while determining how KE manages its fuel cost adjustments.