K-Electric Seeks Increase of Up to Rs. 18 Per Unit in Electricity Price Under FCA

Karachi’s power utility K-Electric has submitted a request for provisional monthly Fuel Charges Adjustment (FCA) for the period of July 2023 to March 2024 to National Electric Power Regulatory Authority (NEPRA). KE has filed FCA based on three scenarios and has requested the approval of any one of the three scenarios for the authority’s consideration and guidance in determining the provisional FCA for above mentioned months to facilitate timely recovery of costs and avoid further accumulation of adjustments to be recovered from customers, the power utility said in a statement. Under the first scenario, KE has proposed that the FCA be calculated as the difference between actual fuel cost and the reference monthly fuel cost as per the interim tariff, whereas, as per the second scenario it has been suggested that the difference between the actual and reference monthly fuel cost be considered as per the tariff petition filed by KE and currently under NEPRA’s deliberation. The third scenario proposes that the difference between actual fuel cost vs. annual weighted average fuel reference costs being considered as per the tariff petition filed by KE and currently under NEPRA’s deliberation. Under the first scenario, KE has requested Rs. 12.94 as the net FCA for the nine months. Under the second scenario, net FCA requested by KE for July-March 2023-24 is Rs. 18.55. Under the third scenario, net FCA requested by KE for the nine months is Rs. 16.9. The power regulator will conduct a hearing on the matter on May 9. Here is K Electric’s comment on the matter: