The Federal Power Division has blocked a proposed Rs4.69 per unit Fuel Charges Adjustment (FCA) relief for K-Electric (KE) consumers for April 2025, citing the need for uniform FCA application across all electricity consumers in Pakistan.Â
According to a news report, this decision was made during a public hearing by the National Electric Power Regulatory Authority (NEPRA), where officials from both the Power Division and KE discussed the request for provisional FCA relief.
The Power Division’s request to defer the FCA determination was based on the federal government’s review of KE’s Multi-Year Tariff (MYT) determination, which is yet to be decided.Â
While the Power Division sought to delay the FCA decision until the review process was completed, NEPRA questioned the lack of supporting financial data and expressed concerns about the transparency of such a move.
KE’s CEO, Moonis Alvi, voiced concerns over the delay, stating that Karachi consumers have historically paid higher FCA rates than the rest of the country and were now unfairly denied relief. He stressed the importance of equal treatment for all consumers.
The FCA relief for KE was requested in response to a negative FCA for April 2025, which would have provided Rs7.17 billion in consumer relief. However, due to discrepancies in KE’s higher reference fuel cost, the Power Division argued that the relief should be withheld until the regulatory review process is completed.
NEPRA Chairman Waseem Mukhtar raised concerns about the impact of the proposed decision on regulatory fairness, indicating that the issue would be revisited in a future hearing.
