Customers of K-Electric should see a drop in their fuel costs adjustment on their electricity bills starting in the following month because the electricity distribution company requested a tariff reduction of Rs10.26 per unit for FCA.
The National Electric Power Regulatory Authority (NEPRA) announced in a statement issued in this regard that it would hold a public hearing on a petition submitted by K-Electric for the FCA for December 2022 on January 30.
The decrease in costs for power acquired from the national grid, furnace oil, and re-gasified liquefied natural gas (RLNG) in December led to the FCA’s request for more than Rs10 per unit.
FCA is based on changes in fuel prices throughout the world and is passed on to consumers in accordance with NEPRA and the Pakistani government’s established norms and regulations.
After carefully examining the statistics for a month in which the fuel charges were recovered from the consumers, NEPRA approves the recommendation suggested by the power distribution firms.
In case of approval, Karachhites will get a relief of nearly Rs13 billion next month. The negative FCA, if approved, would be applicable to all consumer categories except:
- Lifeline consumers
- Domestic consumers using up to 300 units
- Agriculture consumers
- Electric vehicle charging stations
It was also made clear that domestic consumers using Time of Use (ToU) metres, regardless of their usage level, will be subject to the expected modification on account of month FCA.
On account of FCA for November 2022, the power regulator last week decided to lower the electricity rate for KE consumers by Rs7.43 per unit.
KE has asked for a Rs. 7.043 per kilowatt-hour pricing cut in its plea to NEPRA (kWh). On December 27, 2022, the regulator held a public hearing and decided to lower the price per unit by Rs 7.43.
The January 2023 billing month will include the FCA for November 2022.