KARACHI: The K-Electric (KE) has filed a petition with National Electric Power Regulatory Authority (Nepra) on account of Fuel Charges Adjustment for June 2023 at the rate of Rs 2.336 per unit.
The public hearing in this regard will be held on July 26.
As per the KE, the positive FCA for June 2023 is due to utilisation of fuel sources based on economic merit order and increase in fuel price of Furnace Oil, partially offset by decrease in RLNG price.
The price of Furnace Oil increased by six percent compared to the reference month of March. Likewise, the price of RLNG purchased from Pakistan LNG Limited (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.
The KE said the FCA is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. The FCAs are applied after Nepra’s scrutiny and public hearings, which are conducted independently for KE and state-owned entities.
The Nepra also specifies the period during which these costs can be applied to customer bills.
Copyright Business Recorder, 2023