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

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.