KARACHI: K-Electric submitted provisional monthly fuel charge adjustments (FCA) request for November 2024, to be translated as relief of Rs 4.98 per kWh for customers.
Following a public hearing scheduled for January 15, 2025, the National Electric Power Regulatory Authority (NEPRA) will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable.
On account of November FCA, The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought negative adjustment of 0.63 paisa per unit in XWDiscos’ tariffs. It is pertinent to note that this is the third consecutive FCA being passed on as a benefit to KE customers, with September FCA as 0.16 paisa, and October FCA as 0.27 paisa.
Nov FCA: KE set to refund Rs7bn to consumers
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. When fuel prices rise, adjustments are reflected in bills, and similarly, when fuel prices decrease globally, the relief is passed on to the customers in the form of reduced FCA.
All FCAs are calculated in accordance with the regulatory guidelines and reflected in customer bills following NEPRA’s scrutiny and approval.
Copyright Business Recorder, 2024
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