The National Electric Power Regulatory Authority (NEPRA) announced on Friday that K-rate Electric’s would be reduced as a result of the September fuel costs adjustment (FCA), which is a significant relief for Karachi residents.
The FCA, a system by which the price of electricity is modified in response to changes in fuel prices, was informed by the power regulator that a Rs5.1261 per kWh adjustment should be reflected in November bills. Also, this will only be valid for one month.
On October 25, KE’s fuel adjustment application before NEPRA was heard. KE had asked for a negative FCA of Rs4.622 per kWh.
In spite of this, the power authority granted a negative FCA of Rs5.1261 per kWh after hearing the arguments and estimations.
The NEPRA instructed all KE to show the modification in a statement.
This shall apply to all consumer categories except:
- Lifelines consumers
- Domestic consumers who consume up-to 300 units
- Agriculture consumers
- Electric vehicle charging stations
It was also made clear that residential clients using Time of Use (ToU) metres, regardless of their usage level, are subject to the negative adjustment on account of monthly FCA.
Consumers will be affected by the Rs5.12 drop by more than Rs8.6 billion, including GST.
The notification issued in this regard stated that “while implementing the fuel adjustment charges, the concerned K-Electric shall keep in view and strictly comply with the orders of the courts notwithstanding this order.”
The power regulator announced earlier this week that the ex-Wapda distribution companies’ XWDISCOs electricity rates would increase by Rs0.08 per unit in September 2022 due to FCA.
With GST included, the Rs0.08 increase will cost consumers more than Rs1 billion.
