NEPRA concludes hearing for requested relief of PKR 6.62 under February 2025 FCA

NEPRA concluded its hearing on K-Electric’s petition of provisional monthly fuel charge adjustments (FCA) for February 2025, in which KE presented its request for a relief of PKR 6.62 per unit. Following the public hearing, the regulator will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.

KE has also highlighted the adjustments regarding part load, degradation curves, and startup costs pursuant to determination of Generation Tariff of Powerplants of KE for the period post June 2023 and requested NEPRA to consider the recovery of the same from negative fuel cost variation to ensure that consumers are not burdened at later stage.

As per the Regulatory Authority’s decision, the negative FCA shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff.