ISLAMABAD: K-Electric (KE) sought positive adjustment of Rs 4.50 per unit to recover Rs 6.636 billion from its consumers for the month of March under monthly Fuel Charges Adjustment (FCA) mechanism.
NEPRA will conduct a public hearing for KE’s petition for fuel charges adjustments (FCA) for March 2023, on May 3, 2023.
FCA is incurred by utilities due to global variation in fuel prices used to generate electricity and change in generation mix. These costs are passed through to the customers following NEPRA’s scrutiny and approval and usually apply to only one month’s electricity bill. Customers also receive a benefit when the cost of fuel decreases.
FCA of KE for Feb: Nepra approves 58 paisa per unit positive adjustment
For the month of March, K-Electric has filed a petition for positive FCA at the rate of PKR 4.49/KWh. This is primarily due to an increase in fuel prices of RLNG and CPPA-G.
The price of power purchased from CPPA-G in March 2023 has increased by 41 percent compared with December 2022. Similarly, price of purchase for RLNG from SSGC increased by 14 percent from December 2022, while RLNG purchased from PLL increased by 20 percent in the same period. Furnace Oil prices in March 2023 decreased by 10 percent from December 2022.
The responsibility to determine FCA charges and any other costs to be recovered from customers in their monthly bills rests with NEPRA and the Government of Pakistan and follows the prevailing rules and regulations of the country.
Copyright Business Recorder, 2023
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