Due to fuel adjustments, Nepra’s delay might add Rs19 per unit to K-Electric bills for nine months.
Currently, K-Electric’s tariff is under review, with a hearing set for May 9, 2024, to discuss proposed adjustments from July 2023 to March 2024. Other consumers have paid about Rs27 per unit after Nepra approved the CPPA-G’s adjustments; a March FCA of Rs2.94 per unit is pending.
K-Electric suggests three methods to lessen tariff impacts. The first method would adjust FCAs based on the interim tariff differences. The second method calculates FCAs from the differences in K-Electric’s pending tariff petition. The third method uses actual fuel costs against annual average reference costs from the same petition.
If Nepra approves the first or second scenarios, customers will see an Rs18.57 per unit increase from July 2023 to March 2024. The third scenario would result in a Rs16.9 per unit increase.
Nepra has yet to finalize the decision, which has been pending for nine months. Meanwhile, K-Electric informs its 3.5 million customers monthly that the tariff process is ongoing.
As noted in K-Electric’s warnings, future bills will include adjustments from July 2023 onwards, pending regulatory approval.
K-Electric seeks an FCA for nine months, proposing a tariff hike for seven months and reductions for two. Nepra will hear the case on May 9, inviting public feedback.
FCA charges arise from global fuel price fluctuations and generation mix changes, and they are passed to consumers after Nepra’s review and approval.
