NEPRA concludes hearing on Rs4.69 relief under April FCA 2025

By MG News | June 30, 2025 at 11:11 PM GMT+05:00
The National Electric Power Regulatory Authority (NEPRA) on Monday concluded
its hearing on K-Electric’s petition for provisional monthly fuel charge
adjustments (FCA) for April 2025, in which the power utility requested a relief
of Rs4.69 per unit.
The public hearing, which had been previously
deferred at the request of the Ministry of Energy (Power Division), resumed
with NEPRA now set to issue a decision.
This decision will clarify the FCA amount after considering submissions from
all stakeholders and will outline how the adjustment will be passed on to
customer bills, along with the applicable period.
Fuel charge adjustments arise due to global
variations in fuel prices used for electricity generation and changes in the
generation mix.
These adjustments are incorporated into customer bills after scrutiny and
approval by NEPRA. Customers also benefit from negative FCA in their bills when
global fuel prices decline.
The rates charged on customer bills are
determined by NEPRA and subsequently notified by the Federal Government.
During the hearing, K-Electric also outlined
adjustments concerning part load, degradation curves, and startup costs pursuant
to the determination of the generation tariff for its power plants for the period
after June 2023.
The utility requested NEPRA to allow recovery of these costs from the
negative fuel cost variation to ensure consumers are not burdened at a later
stage.
According
to NEPRA’s decision, the negative FCA shall be applicable to all consumer
categories except lifeline consumers, domestic protected consumers, Electric
Vehicle Charging Stations (EVCS), and prepaid electricity consumers of all
categories who have opted for the prepaid tariff.
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