The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing today on the petition submitted by K-Electric (KE) regarding provisional monthly fuel charge adjustments (FCA) for the period of July 2023 to March 2024.
The expected impact of the proposed FCA will be between Rs. 1.6 to 2 per month.
KE has filed FCA based on three scenarios and has requested NEPRA for approval of any of the three scenarios. The Authority will provide guidelines for the per unit cost and period of recovery of the relevant FCAs and issue a subsequent notification clarifying the specific method implemented and its impact on customer bills.
During the interactive hearing conducted in-person and online customers raised questions concerning various aspects of the the provisional FCA. Responding to a question about inducting cheaper generation sources, CEO of K-Electric said that “KE has planned to induct 640 MW of affordable power from wind and solar,” further saying, “KE is pursuing these projects on a fast-track basis and trying in earnest to have them commissioned by the next two years. At the same time the company is looking to induct cheap and indigenous fuel sources to further reduce the basket price.”
FCAs are a standard procedure for utilities, reflecting changes in generation mix and fluctuations in global fuel prices used for electricity generation. Individual Distribution Companies cannot determine the FCA or make unilateral changes as final determinations are notified by NEPRA.
