NEPRA conducted a public hearing on January 31 on the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for December 2022.
The utility, in its petition for FCA, has sought a decrease of PKR 10.26/unit for December 2022. As per applicable tariffs across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for one month only.
After the public hearing and scrutiny, the regulator will decide on the request and issue instructions on the period for which these costs can be applied to consumers bills.
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. December’s FCA is likely to apply in February 2023 bills.
