The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing today, on KE’s request for a reduction of Rs. 10.26 /unit on account of Fuel Charge Adjustments (FCA) for December 2022. NEPRA indicated of giving a relief of Rs. 10.80 to the consumers. A detailed decision in this regards will be issued after scrutiny from the regulator. The FCA is reviewed every month as per the tariff regime applicable across the country and is usually applicable on consumer’s bills for one month only.
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FCAs are linked with changes in global fuel prices and passed onto consumer bills under prescribed rules and regulations of NEPRA and the Government of Pakistan. December’s FCA request was lower primarily due to a reduction in prices of RLNG, furnace oil, and power purchased from CPPA-G by 17%, 15%, and 29% respectively as compared to September 2022 and better utilization of generation mix.
For the past consecutive months, downward trends in prices of fuels have enabled KE to pass on benefits of negative FCA to customers. Per NEPRA guidelines, after scrutiny of KE’s submission, the Authority will issue instructions on the period during which these costs can be applied to consumer bills. December FCA is likely to apply in February 2023 bills.