NEPRA granted a reduction of Rs2.45 per unit for K-Electric (KE) subscribers due to fuel cost adjustment (FCA) for October electricity.
December invoices reflect rate changes.
In its notification for KE power rate adjustments, NEPRA indicated the negative FCA would apply to all customer categories except, Lifeline consumers, domestic consumers (up to 300 units), Agriculture Consumers and electric vehicle charging stations.
Negative month FCA adjustment will also apply to residential clients with Time-of-Use (ToU) meters, regardless of consumption level.
“The negative FCA should be shown individually in consumers’ invoices based on units billed in the relevant month,” the letter said.
NEPRA heard KE’s fuel adjustment application on November 30. KE requested a negative FCA of Rs1.88 per kWh.
After hearing arguments and estimations, the regulator authorized a negative FCA of Rs2.4536 per unit.
So. Whats KE’s role in this? Compared to September, the cost of RLNG declined by 16% in October, the cost of furnace oil by 6%, and the cost of power from CPPA-G by 6%. KE had applied the rate of Rs9.4162/unit for the cost of electricity acquired from the Central Power Purchasing Agency (CPPA-G) during the current month. However, the authority has allowed a fuel cost component for DISCOs of Rs8.8492/unit for the current month. As a result, there has been an about Rs438 million decrease in fuel price overall.