KARACHI, 9 AUG 2023: After due process, NEPRA issued its decision on K-Electric’s petition for positive Fuel Charge Adjustments (FCA) for the month of June 2023 at a rate of 2.3112 per unit and will reflect in customer bills only for the month of August 2023. FCAs are approved by the regulator, NEPRA, after review who also specifies the month during which the charge is applied in customers’ bills.
FCA is dependent on the global prices of fuel and are passed on to customers bills under the prescribed rules and regulations of NEPRA and the Government of Pakistan.
Positive FCA for June 2023 is due to the utilization of fuel sources based on economic merit order and an increase in the fuel price of Furnace Oil, partially offset by a decrease in the price of RLNG. The price of Furnace Oil increased by 6% compared to the reference month of March. Likewise, the price of RLNG purchased from PLL decreased by 6%, the price of RLNG from SSGC decreased by 2%, while the price of power purchased from CPPA-G decreased by 1%.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.