K-Electric (KE) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) for November 2022 as part of the Fuel Charges Adjustment (FCA) in January 2023 bills of Rs 7.04 per unit of electricity tariff. Has shown willingness to reduce. .
The reduction in tariff will provide relief to Karachi’s electricity consumers at a time when rising inflation and cost of living will increase.
Nepra will hold a public hearing on December 27 on K Electric’s request for reduction in tariff in view of Fuel Cost Adjustment (FCA) for November 2022.
In the hearing, Nepra will determine whether the requested change in fuel charges is justified and whether the Economic Merit Order (EMO) was followed while dispatching its power plants and purchasing electricity from private power suppliers. .
This is the fifth consecutive petition for a negative FCA since July where KE has requested a tariff reduction.
A KE spokesperson said, “November’s FCA was lower mainly due to 18%, 15%, and 37% decline in prices of power purchased from RLNG, furnace oil, and CPPA-G respectively. As compared to September 2022.
Nepra, after scrutiny and public hearings, allows or denies FCAs, which are conducted independently for KKs and public sector enterprises (DISCOs).
Previous FCA
Nepra directed K-Electric to refund Rs 5.126 per unit in November bills to clients in respect of November 2022 FCA. The reduction in tariff has an impact of Rs 9 billion on the company.
For the August FCA, KE was directed to refund Rs 4.8862 per unit to consumers in October bills with an impact of around Rs 8.5 billion. Similarly, for July 2022 FCA, the regulator asked KE to refund Rs 4.117 per unit in September 2022 bills.
For the June 2022 FCA, Nepra had allowed the utility to charge an additional Rs 11.102 per unit in electricity bills for August and September 2022, with a cumulative impact of Rs 25 billion. For the May FCA as well, it had asked KE to charge Rs 9.518 per unit extra in two months, including Rs 2.6322 per unit in July and Rs 6.886 per unit in August bills.
