NEPRA conducted a public hearing on Tuesday on KE’s request for a reduction of Rs. 7.04 per unit on account of Fuel Charges Adjustments (FCA) for November 2022.
A separate hearing was also conducted on Federal Government’s request to apply Quarterly Adjustments on KE consumers.
FCAs are linked with changes in global fuel prices and passed onto consumer bills under prescribed rules and regulations of NEPRA and the Government of Pakistan.
November’s FCA request was lower primarily due to a reduction in prices of RLNG, Furnace Oil, and power purchased from CPPA-G by 17%, 15%, and 37% respectively as compared to September 2022.
NEPRA also heard Federal Government’s request to apply quarterly tariff adjustments in KE consumer bills. This request was made to maintain a uniform tariff for all electricity users in the country.
In its application, the Federal Government had requested an increase of Rs. 1.48 per unit for residential consumers with consumption up to 300 units (excluding lifeline consumers), an increase of Rs. 3.21 per unit for residential consumers with consumption above 300 units, and an increase of Rs. 4.45 per unit for all other categories.
Final decisions on both matters with details on implementation will be determined by NEPRA. Decision on Uniform Quarterly Adjustment will be followed by Government notification. Both the regulator and the government govern the process through which the costs of electricity are set in the country. Individual distribution companies can neither influence nor modify the tariff unilaterally.
