Islamabad: The National Electric Power Regulatory Authority (NEPRA) concluded a public hearing on December 12, 2024, regarding K-Electric’s petition for a provisional monthly fuel charge adjustment (FCA) for October 2024. The expected relief of PKR 461 million will translate to a reduction of PKR 0.27 per unit in customer bills. NEPRA will issue its decision clarifying the FCA amount to be passed on and the month in which it will be charged in customers’ bills.
Fuel charge adjustments reflect variations in global fuel prices and changes in the generation mix. These adjustments are applied to customer bills only after NEPRA’s detailed scrutiny and approval. Customers benefit from negative FCAs in their bills during periods of declining global fuel prices. The rates applied are determined by NEPRA and notified by the Federal Government.
The primary driver of this FCA relief stems from the decline in international fuel prices and better use of generation mix. K-Electric utilized its electricity resources based on economic merit order wherein KE ensured efficient power generation plants were utilized during October 2024. During October 2024, the generation on expensive Furnace Oil was reduced, RLNG was utilized on efficient power plants and the power purchased from CPPA-G was increased (as compared to reference month) to ensure lower cost of generation.
This FCA adjustment underscores KE’s commitment to optimizing its fuel mix and ensuring transparency in energy costs operating in a regulated environment.
