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KARACHI: K-Electric (KE) has filed a petition on account of Fuel Charges Adjustment for June 2023 at the rate of Rs 2.336 per unit. A public hearing in this regard has been concluded by Nepra.

Positive FCA for June 2023 is due to the utilisation of fuel sources based on economic merit order and an increase in the fuel price of furnace oil, partially offset by a decrease in the price of RLNG. The price of furnace oil increased by six percent compared to the reference month of March. Likewise, the price of RLNG purchased from PLL decreased by six percent, the price of RLNG from SSGC decreased by two percent. While the price of power purchased from CPPA-G decreased by one percent and is subject to Nepra’s final decision.

FCA is incurred by utilities due to global variations in fuel prices used to generate electricity and change in the generation mix. FCAs are applied after Nepra’s scrutiny & public hearings, which are conducted independently for KE and state-owned entities (DISCOs). Nepra Authority also specifies the period during which these costs can be applied to customer bills.

Copyright Business Recorder, 2023

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