Islamabad: The National Electric Power Regulatory Authority (NEPRA) has held a public hearing on K-Electric’s (KE) request for an interim adjustment (FCA) of regulatory fuel charges for the period from July 2023 to March 2024. The FCA is proposed to be between PKR 1.6 and 2 per month compared to the FCA average of PKR 2.89 applied to customers of other electricity distribution companies at the same time.
KE has submitted FCA based on three scenarios and asked NEPRA to approve one of the three scenarios. The authority will issue guidelines for the unit price and recovery period from the relevant FCAs and will issue further notices to determine the exact method to be implemented and the impact on customer costs.
Questions were raised about various aspects of the interim FCA in an interactive hearing organized by people and consumers online. “KE plans to deploy 640 MW of available wind and solar power,” he said in response to a question about K-Electric’s induction of low-cost generation sources.
FCA is a standard procedure for utilities to reflect changes in global fuel prices and changes in the generation mix used to generate electricity. Individual distribution companies cannot define FCA or make unilateral changes as per the latest definition notified by NEPRA.
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).
