NEPRA Holds Hearing on KE’s Fuel Charge Adjustments for 9 Months

The National Electric Power Regulatory Authority (NEPRA) convened a public hearing on May 9, 2024, to discuss K-Electric’s (KE) request for provisional monthly fuel charge adjustments (FCA) spanning July 2023 to March 2024. KE’s proposed adjustments, ranging from PKR 1.6 to 2 per month, aim to align with the average FCA of PKR 2.89 for customers of other power distribution companies during the same period.

KE has presented three scenarios for the FCA and awaits NEPRA’s approval on any of them. NEPRA will issue guidelines on the per unit cost and recovery period of the FCAs, clarifying the impact on customer bills in a subsequent notification.

During the interactive hearing, both in-person and online customers raised queries regarding the provisional FCA. Responding to concerns about cheaper generation sources, KE’s CEO outlined plans to introduce 640 MW of affordable power from wind and solar within the next two years, alongside efforts to incorporate cost-effective indigenous fuel sources.

Fuel Charge Adjustments (FCAs) are a regulatory mechanism reflecting changes in generation mix and global fuel prices for electricity production, with final determinations issued by NEPRA, preventing unilateral changes by individual Distribution Companies.