K-Electric has requested provisional approval from the National Electric Power Regulatory Authority (NEPRA) to implement a Fuel Charges Adjustment (FCA) of Rs3.09 per unit for July 2024. The adjustment aims to recover an additional Rs6.206 billion, largely due to a 47.5% increase in fuel costs driven by a 73% surge in generation costs.
NEPRA has scheduled a public hearing for August 29, 2024, to review the data provided by K-Electric concerning the fuel price fluctuations for July. This FCA proposal is based on the Central Power Purchasing Agency’s (CPPA) fuel cost for the month and uses March 2023 as an interim tariff reference.
K-Electric states that the fuel and power purchase costs are calculated according to the Economic Merit Order, ensuring that no late payment surcharges or interest are included. The final decision on the FCA will be made by NEPRA following the public hearing.
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