ISLAMABAD: K-Electric (KE) has sought negative adjustment of Rs 4.95 per unit to refund Rs 4.940 billion to its consumers under the FCA mechanism for the month of December 2024.
According to NEPRA, KE has s requested provisional negative FCA for December 2024, which has been calculated on the basis of interim reference tariff of March 2023.
KE also has also submitted that pursuant to determination of Generation Tariff of Power plants for the period post June 2023, it has submitted the required partial load, open cycle and degradation curves along with Startup Cost for approval and an amount of Rs.5 billion from July 2024 to December 2024 is accordingly pending for adjustment.
KE has request that the Authority may also consider adjustment of accumulated actualization of fuel cost so that the recovery can be made from the negative fuel cost variation to ensure consumers are not burdened at later stage.
In this regard, NEPRA is scheduled to conduct a public hearing on February 26, 2025 to consider the proposed adjustment. For deliberation during the hearing, following issues have been framed which are as (i) whether the requested FCA is justified; (ii) whether KE has followed the merit order while giving dispatch to its powerplants as well as power purchases from external sources; and (iii) whether the request of KE to consider adjustment of accumulated actualization of fuel cost on account of partial load, open cycle and degradation curves along with startup cost from July to Dec. 2024, from the negative fuel cost variation is justified?.
All the interested/affected parties are invited to submit written/ oral comments or objections as permissible under the law at the hearing.
Copyright Business Recorder, 2025
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