KARACHI – National Electric Power Regulatory Authority (NEPRA) has decided on interim fuel charge adjustment (FCA) mandated by KE from July 2023 to March 2024. FCA on consumer charges for four (04) months i.e. from June 2024 to September 2024 .
The mechanism governing the calculation of FCA is described in the Multiannual Tariff (MYT) for distribution companies. K-Electric’s MYT request for the monitoring period FY24 to 30 is currently under discussion, KE has asked NEPRA to pass the FCA charges to customers for the period from July 2023 to March 2024. The hearing on the matter was held by NEPRA on 9 May 2024 and included a full discussion about the change in KE’s fuel costs during the specified period. This adjustment takes into account global changes in fuel prices and KE’s energy mix. It may be noted that in the first 9 months of FY24, other DISCO customers in the country have gone through the same process to pay an average monthly FCA of PKR 2.89/unit. In comparison, FCA interim KE during that period averaged PKR 1.26/unit.
The decision sets the following FCA rates that will be included in customer payments for the next four months:
June 2024 Tariff: PKR 2.6761/kWh (valid on 23 October and 24 February)
July 2024 Bill: PKR 3.1057/kWh (July 23 & September 23)
Tariff for August 2024: PKR 3.2242/kWh (Applicable for 23 August, 23 November and 23 December)
Effective September 2024: PKR 0.9980/kWh (January 24 & March 24)
This amendment is part of an ongoing effort to align electricity prices with real fuel costs, ensuring transparency and fairness in energy bills. As global fuel prices fall, customers also benefit from their bills.
About K-ELECTRIC:
K-Electric (KE) is a publicly listed company established in 1913 as KESC in Pakistan. KE, which was privatized in 2005, is the only vertically integrated power plant in Pakistan that supplies electricity to Karachi and nearby areas. The company’s main shares (66.4%) belong to KES Power, a consortium of investors including Saudi Arabia’s Al-Jomaih Power Limited, the National Industrial Group (Holding), Kuwait and the Infrastructure and Development Fund (IGCF). The Government of Pakistan also holds shares in the company (24.36%), while the rest is registered as free floating shares.
