K-Electric proposes Rs5.02/kWh relief in March FCA

May 15, 2025 (MLN): K-Electric has submitted a provisional request for monthly fuel charge adjustment (FCA) for March 2025, proposing a relief of Rs5.02 per kilowatt-hour for consumers.

The National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a public hearing on May 22, 2025, after which a final decision will be made regarding the FCA amount to be passed on to consumer bills and the applicable period.

This marks the seventh consecutive month of FCA relief for KE customers. The FCA for September 2024 was 0.18 paisa, October was 0.49 paisa, November stood at PKR 1.23, December at Rs3, January at Rs3.02, and February at Rs3.64.

Fuel charge adjustments are a result of global fuel price fluctuations and changes in the electricity generation mix, according tothe press release issued today.

These adjustments are added to customer bills when fuel prices increase and are reversed when prices drop, allowing customers to benefit from reduced FCAs.

KE has also brought attention to matters such as part load operations, degradation curves, and startup costs based on the Generation Tariff determinations of KE’s power plants post-June 2023.

The company has urged NEPRA to allow recovery of these costs from the negative fuel cost variation to avoid future consumer burden.

All FCA computations are carried out in line with regulatory requirements and are only reflected in consumer bills after NEPRA’s review and approval.

K-Electric (KE), incorporated in 1913 as KESC, is a publicly listed company and the only vertically integrated power utility in Pakistan.

Serving Karachi and surrounding areas, KE was privatized in 2005.

Currently, 66.4% of KE is owned by KES Power a consortium including Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Holding) of Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

The Government of Pakistan holds a 24.36% stake, while the remainder is held by public shareholders.

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