ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has concluded a public hearing on K-Electric’s request for a Rs5.02 per unit relief under the monthly Fuel Charges Adjustment (FCA) for March 2025.
A final decision on the relief amount and the month of its implementation in consumer bills will be announced later.
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 negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the federal government.
In its application, KE also highlighted the adjustments regarding part load, degradation curves, and startup costs pursuant to determination of Generation Tariff of Powerplants of KE for the period post June 2023 and requested NEPRA to consider the recovery of the same from negative fuel cost variation to ensure that consumers are not burdened at later stage.
As per NEPRA stance, the negative FCA—if approved—would apply to all consumer categories except lifeline consumers, protected domestic consumers, electric vehicle charging stations (EVCS), and those using prepaid metering systems.
The authority will issue a detailed decision in due course, clarifying the final relief amount and its effective billing cycle.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih 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 shareholder (24.36%) in the Company while the remaining are listed as free float shares.
