The residents of Karachi are expected to receive substantial relief of Rs6.62 per unit in their electricity bills under the Fuel Charges Adjustment (FCA) for February 2025.
According to details, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on April 16, 2025, to consider a request by K-Electric (KE) for a provisional negative FCA of Rs6.62 per unit for the said month.
Sources said KE submitted the FCA request based on the interim reference tariff of March 2023, citing a negative variation of Rs6.662 billion in fuel costs during the month under review.
KE has also requested NEPRA to consider the adjustment of pending actualized fuel cost components—related to partial load, open-cycle operations, degradation curves, and startup costs—accumulated from July 2023 to February 2025. The company claims that Rs13.9 billion remains unadjusted, of which Rs7.4 billion was already accounted for in the FCA decisions for November and December 2024.
The utility has urged NEPRA to allow recovery of the remaining adjustment from the negative FCA amounts of January and February 2025, arguing that this would help avoid placing a financial burden on consumers at a later stage.
NEPRA has identified three key issues for deliberation during the upcoming hearing:
- Whether the requested negative FCA for February 2025 is justified.
- Whether KE adhered to the merit order in dispatching electricity from its own power plants and procuring it from external sources.
- Whether KE’s request to adjust actualized fuel costs—arising from partial load operations, open-cycle usage, degradation curves, and startup costs from July 2023 to February 2025—is justified under the prevailing regulatory framework.
NEPRA has invited interested stakeholders to submit written or oral comments. Details of KE’s petition, along with relevant rules and past determinations, are available on NEPRA’s website, sources added.
