K-Electric says ‘a negative FCA for August was possible due to decrease in fuel prices along with price of power purchased from National Grid.
The NEPRA has approved Fuel Charge Adjustment reduction of Rs.4.89/kWh for K-Electric consumers for the month of August 2022. The decision and subsequent reduction to consumers will apply for the billing month of October 2022.
Fuel Charge Adjustments (FCA) is an approved adjustment applied on bills for electricity consumers of KE and state-owned DISCOs under the prescribed rules and regulations determined by NEPRA and the Government of Pakistan
FCA is incurred by utilities due to global variation in fuel prices to generate electricity and changes to the generation mix. A negative FCA for August was possible due to decrease in fuel prices along with price of power purchased from CPPA-G (National Grid). Price of electricity from CPPA-G decreased by 36% compared with June 2022, while RLNG prices decreased by 16% over the same period. Furnace Oil prices increased 3% in August 2022 compared with June 2022.
As per KE’s spokesperson, FCAs are applied after NEPRA’s scrutiny & public hearings, which are conducted independently for KE and state-owned entities (XWDISCOs). Alongside final approval on the FCA to be charged to consumers, the NEPRA Authority also specifies the categories of consumers on whom the decision applies along with the period during which these FCA can be applied to consumer bills. (PR)