ISLAMABAD: The National Electric Power Regulatory Authority’s (NEPRA) delay in announcing the determinations for two months of Fuel Charge Adjustments (FCA) has raised serious concerns for K-Electric, according to well-informed sources speaking to Business Recorder.
K-Electric has addressed this issue in its provisional FCA adjustment request for September 2024, proposing a refund of Rs247 million (16 paisa per unit) to consumers.
The FCA adjustment request is based on NEPRA’s decisions regarding provisional monthly Fuel Cost Adjustments for the period from July 2023 to June 2024, allowing for provisional FCA based on parameters defined in the Multi-Year Tariff (MYT) 2017-23.
Aug FCA: KE seeks Re0.51 positive adjustment
K-Electric claims that the provisional FCA calculation for September 2024, along with the relevant support documentation, is based on the approved mechanisms from July 2023 and June 2024. The request also clarifies that provisional FCAs are subject to adjustment once the MYT 2024-2030 is finalized, which was determined on October 22, 2024.
The monthly FCA for September 2024 has been calculated using March 2023 as the interim tariff reference, revealing a negative variation of Rs247 million, equivalent to 16 paisa per unit, which will be refunded to K-Electric consumers. For this FCA calculation, K-Electric utilized the latest invoice from the Central Power Purchasing Agency-Guaranteed (CPPA-G) for September 2024, subject to actualization based on NEPRA’s decision.
K-Electric’s adjustment request indicates that the company dispatches electricity according to the Economic Merit Order from its own generating units and imports from external sources. It certifies that the fuel and power purchase costs do not include any late payment surcharges or interest.
K-Electric has also urged NEPRA to expedite the processing of pending FCA requests for July and August 2024. For July 2024, K-Electric sought a positive adjustment of Rs3.09 per unit to recover an additional Rs6.206 billion, while for August 2024, it requested a positive adjustment of Rs0.51 per unit, with financial implications of Rs853 million. Both decisions remain pending with the regulator.
Copyright Business Recorder, 2024
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