The National Electric Power Regulatory Authority (NEPRA) has authorized Rs. 4.7 per unit refund of fuel cost adjustment (FCA) for K-Electric (KE) consumers in upcoming bills. It is pertinent to mention that the amount will be adjusted in the bills for next month.
The development comes after KE requested an Rs. 4.62/unit reduction in FCA since the power distributor overcharged Rs. 7.74 billion from its consumers in September.
Therefore, NEPRA has approved an Rs. 4.70/unit decrease with an Rs. 7.78 billion revenue impact. The decision was made at a public hearing chaired by Chairman NEPRA, Tauseef H. Farooqui, while Rafique A. Shaikh, and Maqsood Anwar Khan, attended the hearing as members.
Following the hearing, KE’s spokesperson said that FCAs are re-assessed every month and are imposed on consumers as per the directives issued by NEPRA.
Moreover, he added that the consumers benefit when the fuel prices drop in comparison to the reference month.
Furthermore, an official announcement will be made as soon as data verification based on documentary evidence and invoices is finished.
It is for the third consecutive month that KE consumers’ FCA will be less than the reference rates. Also, the consistent provision of relief partially reduced the burden of the massive increase in FCA in the last few months, which surpassed Rs. 11 per unit.
In September, KE’s FCA was lower in comparison with the reference fuel charges with a revenue impact of Rs. 8.4 billion.
In this regard, KE stated that it was reduced as a result of a decrease in fuel prices and noted that the cost of electricity bought from the Central Power Purchasing Agency (CPPA) in September declined by 36 percent as compared to June.
