On July 04, NEPRA conducted a public hearing over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for May 2022. Per applicable tariff across the country, fuel adjustment is reviewed every month by the Regulatory Authority and is applicable on consumer bills for only one particular month.
KE has requested for an increase of PKR 11.33/kWh on account of increased costs of Furnace Oil and RLNG. The price of Furnace Oil in May 2022 has increased by 38% from March 2022 while the price of RLNG between March to May 2022 has increased by 50%. Cost of electricity from CPPA-G in May 2022 also increased by 53%.
Fuel Charge Adjustment (FCA) are incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers under the governing rules and regulations following NEPRA’s scrutiny and approval. Consumers also receive a benefit when the cost of fuel decreases.
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 km2 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.