ISLAMABAD: While withholding an amount of Rs 2 billion of K-Electric, National Electric Power Regulatory Authority (Nepra) has allowed negative adjustment of Rs 3.021 per unit for KE’s consumers for January 2025, to refund Rs 2.930 billion under monthly Fuel Charges Adjustment (FCA) mechanism.
The Authority held a public hearing on March 20, whereas all categories of consumers from Karachi opposed adjustment of previous due amounts on different accounts.
The Authority, in its decision decided to allow a negative FCA of Rs.3.0218/kWh (negative Rs. 2.930 billion) for January 2025, to be passed on to the consumers in the billing month of April 2025.
KE submits negative FCA adjustment request for Jan
The negative FCA of Rs.3.02 18/kWh is being allowed on provisional basis subject to adjustment, once the Authority determines MYT of KE for the period FY 2024-30. The difference in cost, if any, based on the Multi Year Tariff (MYT) FY 2024-30 would be allowed in future adjustments, once the same is notified.
The Authority directed KE that the negative adjustment shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff.
It is to be shown separately in the consumers’ bills on the basis of units billed to the consumers, in the respective month to which the adjustment pertains. In case any bills of April 2025 are issued before the notification of this decision, the same may be applied in subsequent month.
The KE shall reflect the fuel charges adjustment in respect of January 2025 in the billing month of April 2025. While effecting the Fuel Adjustment Charges, the KE shall keep in view and strictly comply with the orders of the courts notwithstanding this order.
The Authority in its decision clarified that not to over burden the consumers at a later stage for such pending costs, it provisionally retained an amount of Rs.7.453 billion, from the FCA of November 2024 and December 2024 which is to be adjusted against the aforementioned pending costs. The Authority is cognizant of the fact that despite Rs.7.453 billion already withheld around Rs. 6 billion still remains pending.
In view thereof, the Authority has decided to withhold an amount of Rs. 2 billion from the worked out negative FCA of Rs.4.930 billion for the month of January 2025.
The Authority also considered the fact that KE has filed FCA request of negative Rs.6.662 billion i.e. negative Rs.6.62/kWh for February 2025, which would provide further margin for adjustment of any remaining pending claims, if required.
In an additional note, Member (Tech), Rafique Ahmad Shaikh said that in January 2025, KEL experienced an 8% decline in overall electricity sales compared to January 2024. The most significant drop occurred in industrial sales, which saw a notable reduction of 8.3%.
This sharp decline warrants immediate investigation and attention from all relevant stakeholders to understand the underlying causes and take corrective action. Furthermore, the ongoing delay in the execution of the interconnection arrangement between NTDC and KEL is adversely impacting the fuel costs associated with KEL’s generation mix.
In January 2025, KEL’s own power plants contributed 4% to the energy mix, while 7% of electricity came from purchases from IPPs, with NTDC supplying the remaining 89%. Notably, the cost of generation from the NTDC system is significantly lower, at Rs. 11.15/kWh, compared to KEL’s own generation cost of Rs. 23.83/kWh.
Copyright Business Recorder, 2025
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