Dec, Nov 2024 respectively: Nepra approves Rs1.23/unit cut in FCAs of Discos, KE

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved national average uniform decrease of Rs1.23 per unit in FCA of Discos for the month of December 2024 and Rs1.23 per unit FCA of K-Electric for November 2024.

The authority held public hearings on the FCAs adjustment petitions of both the CPPA-G and K-Electric.

According to the determination, Discos actual national average uniform FCA for December 2024 was Rs9.4081/kWh against the reference FCA of Rs10.6364/kWh, hence, the Nepra has approved negative adjustment of Rs1.2283/kWh for Discos.

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The reduction shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, electric vehicle charging stations (EVCS), pre-paid electricity consumers of all categories who opted for pre-paid tariff and agriculture consumers of all the Discos.

The negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

The negative adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of December 2024.

In case any bills of February 2025 are issued before the notification of this decision, the same may be applied in subsequent month.

K-Electric: Nepra has also approved a negative adjustment of Rs1.23 per unit for KE for November 2024 to be recovered in the bills of February 2025. KE, in its petition had sough negative adjustment of Rs4.98 per unit to refund Rs7.179 billion.

According to determination, the authority is also cognisant of the fact that KE’s new generation tariff for the MYT 2024-30 has been determined by the authority vide decision dated 22.10.2024, whereby, certain costs on account of part load, open cycle and degradation curves along-with start-up costs have been allowed.

However, monthly FCAs being allowed to KE since July 2023 till November 2024, are as per the previous MYT 2017-23, wherein, such costs were not envisaged.

KE has worked out an amount of Rs8.7 billion on account of these costs for the period from July 2023 to June 2024,which if approved by the authority would be passed on to the consumers.

In view thereof, and not to over burden the consumers at a later stage, the authority has decided to allow retention of an amount of Rs5.444 billion, from the instant negative FCA of KE.

Any additional amount required would be retained from the future negative monthly FCAs of KE. The retained amount would be adjusted against the pending cost on account of part load, open cycle and degradation curves along-with start-up costs.

Based on the discussion, the authority has decided to allow negative FCA of Rsl.23/kWh to KE for the month of November 2024, to be passed on to the consumers in the billing month of February 2025.

In case any bills of February 2025 are issued before the notification of this decision, the same may be applied in subsequent month.

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