KARACHI, JULY 5th, 2023: NEPRA conducted a public hearing today over the petition submitted by K-Electric on account of Fuel Charges Adjustments (FCA) for May 2023.
For the applicable month, K-Electric had filed a petition for an FCA at a rate of PKR 1.495 per unit.
FCA is dependent on the prices of fuel and changes in generation mix used to produce electricity and is passed on to customer bills under the prescribed rules and regulations of NEPRA and the Government of Pakistan. The positive FCA for May 2023 is primarily due to a slight increase in fuel price and power purchased from CPPA-G and changes in generation mix that is used to make electricity as per the Economic Merit Order. Compared to the reference month of March, the price for Furnace Oil in May 2023 increased by 3%, the price of power purchased from CPPA-G increased by 4%. The price of RLNG purchased from PLL in May 2023 decreased by 4% whereas, the price of RLNG from SSGC increased by 3%.
KE’s spokesperson said that FCAs are approved by the regulator, NEPRA, after conducting scrutiny and public hearings. These are conducted independently for KE and state-owned entities (XWDISCOs). The authority also specifies the month during which the charge is applied in customer bills.
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.