Karachi, August 28, 2025: NEPRA concluded its hearing on CPPA-G’s request for monthly fuel charge adjustments (FCA) for July 2025, in which CPPA-G presented its request for a relief of PKR 1.69 per unit. Following the public hearing, the regulator will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable.
Along with the request of FCA, it was further presented that the notified FCA will also be applicable on K-Electric (KE) customers – by way of tariff rationalization as approved by Economic Coordination Committee (ECC) on August 19, 2025 and any difference between the monthly FCA rate determined for KE and notified FCA be made available to KE by way of subsidy. Moreover, as per the letter submitted by Ministry of Energy, the uniform FCA application shall start from the month of June 2025.
When NEPRA Authority asked for KE’s point of view, CEO KE Moonis Abdullah Alvi shared that the company will be fully compliant with NEPRA’s notified decision on the imposition of the uniform FCA.
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.
As per the Regulatory Authority’s decision, the negative FCA shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff.
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 power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and KE Holdings (Formerly: Infrastructure and Growth Capital Fund or IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.