KE FCA for October: Nepra to approve Re0.27/unit negative adjustment

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) will approve negative adjustment of Re0.27 per unit in Fuel Charges Adjustment (FCA) of K-Electric for October 2024.

Nepra held a public hearing on Thursday which was attended by the consumers from Karachi. KE wants to refund Rs461 million to its consumers for the month of October 2024.

Tanveer Barry, representative of Karachi Chamber of Commerce and Industry (KCCI) said the K-Electric’s reference cost of fuel was estimated at Rs13.5 billion whereas actual cost of fuel is Rs18.1 billion which is 34% higher against the reference fuel cost. On the other hand, the reference power purchase cost was estimated at Rs10.1 billion whereas actual power purchase cost is Rs8.8 billion which is 13% lower than the reference cost.

KE concerned at Nepra’s delay in announcing FCA for two months

He argued that the higher actual fuel cost can be attributed to inefficient power plants being operated by KE adding that as fuel cost has decreased all over Pakistan it had only increased in K- Electric’s power system.

According to Nepra, since Paisa 17 per unit FCA for September 2024 will be replaced with Paisa 27 per unit for October 2024, hence the further net negative adjustment will be Paisa 10 per unit in the bills.

The negative adjustment will not be applicable to lifeline consumers, pre-paid and electricity vehicles charging stations. The Authority will issue detailed determination soon.

KE dispatches as per Economic Merit Order from its own generating units (with the available fuel resources) and import from external sources. It also certified that the cost of fuel and power purchase claim does not include any amount of late payment surcharge/mark-up/interest.

Copyright Business Recorder, 2024