NEPRA Concludes Hearing on K-Electric’s Request for Fuel Charge Adjustment Hike
The National Electric Power Regulatory Authority (NEPRA) recently wrapped up its hearing on K-Electric’s request for a Rs 0.51 per unit increase in fuel charge adjustments (FCA) for August 2024. The decision on the FCA amount to be passed on to customer bills and the duration of its applicability will be announced post the public hearing verdict.
K-Electric has also sought a Rs 3.09 per unit hike for July 2024, with the hearing already concluded on August 29. The final decision on the amount and the billing period is pending. Interestingly, the requested FCA for August 2024 signifies a net decrease of PKR 2.58 per unit compared to the previous month.
This adjustment in fuel charges is a result of global fuel price fluctuations and variations in the generation mix. NEPRA’s approval is crucial in reflecting these costs on customer bills. In instances of reduced global fuel prices, customers benefit from negative FCAs. The rates charged to customers are determined by NEPRA and ratified by the Federal Government.