Islamabad,JUNE 20 2023: K-Electric (KE) has submitted a petition to conduct a public hearing on account of Fuel Charges Adjustment for the month of May 2023 at the rate of PKR 1.495 per unit.
The request is due to slight increases in prices of fuel and power purchased from CPPA-G. Compared to the reference month of March 2023, 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%.
FCA is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. FCAs are applied after NEPRA’s public hearings and scrutiny, which are conducted independently for KE and state-owned entities (XWDISCOs). NEPRA Authority also specifies the period during which these costs can be applied to consumer 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.