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Reading: K-Electric Proposes Rs4.98 per kWh Relief for November FCA
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K-Electric November FCA Relief
PhotoNews Pakistan > Business > K-Electric Proposes Rs4.98 per kWh Relief for November FCA
Business

K-Electric Proposes Rs4.98 per kWh Relief for November FCA

Web Desk
By Web Desk Published January 16, 2025 2 Min Read
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NEPRA has concluded its hearing on K-Electric’s petition for provisional monthly fuel charge adjustments (FCA) for November 2024, proposing a reduction of PKR 4.98 per unit as a relief measure.

After the public hearing, the regulator will announce its decision, specifying the FCA amount that will reflect on customer bills and the duration of its applicability.

This is the third consecutive FCA benefiting KE customers. The September FCA previously granted a relief of 0.16 paisa, while NEPRA’s latest judgment for October 2024 has given a relief of Rs0.492 per kWh, which will reflect in their January 2025 bills.

K-Electric has submitted the necessary partial load, open cycle, and degradation curves along with startup costs for NEPRA’s approval, pending adjustment based on the decision regarding KE’s Generation Tariff on October 22, 2024.

The utility has requested that the Authority consider adjusting the accumulated actualization of fuel costs to offset negative variations and prevent future consumer burdens.

Read: K-Electric Announces Potential Relief of PKR 4.98 per kWh in November 2024

Fuel charge adjustments reflect the global fluctuations in fuel prices used for electricity generation and changes in the generation mix. Increases in fuel prices lead to higher bill charges, whereas decreases result in relief passed on to customers through reduced FCAs.

All FCAs are calculated following regulatory guidelines and are included in customer bills after NEPRA’s scrutiny and approval.

Addressing the electricity supply situation, Muhammad Aamir Ghaziani, CFO of K-Electric, highlighted that industries are exempt from load-shedding. Additionally, 70% of KE’s network is free from load shedding, with the schedule available on the KE website. During winter, scheduled preventative maintenance shutdowns are crucial for maintaining network reliability and ensuring continuous power supply.

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