K-Electric proposes Rs6.62 per kWh FCA relief for customers in February

April 09, 2025 (MLN): K-Electric submitted provisional monthly fuel charge adjustments (FCA) request for February 2025, to be translated as relief of Rs6.62 per kWh for customers.

The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on April 16, 2025, to review the request and issue a decision on the FCA amount to be passed on to customer bills, as well as the duration for which the adjustments will apply.

This marks the sixth consecutive FCA being passed on as a benefit to KE customers. Previous FCAs included September 2024 (0.18 paisa), October 2024 (0.49 paisa), November 2024 (1.23 rupees), December 2024 (3.0 rupees), and January 2025 (3.02 rupees).

Fuel charge adjustments reflect the global variations in fuel prices used for electricity generation and changes in the generation mix, according to the press release issued today.

When fuel prices rise, the adjustments are passed on to customers, while price decreases result in relief reflected in lower FCA charges for consumers.

KE has also highlighted concerns regarding part load, degradation curves, and startup costs following the determination of the Generation Tariff of Powerplants for the period post-June 2023.

The company has requested NEPRA to consider recovering these costs from negative fuel cost variations, ensuring that consumers are not burdened in the future.

All fuel charge adjustments are calculated according to regulatory guidelines and are subject to NEPRA's scrutiny and approval before being reflected in customer bills.

K-Electric (KE), incorporated in 1913 as KESC, is a public listed company and the only vertically integrated power utility in Pakistan. Privatized in 2005, KE supplies electricity to Karachi and surrounding areas.

The company is majority-owned by KES Power, a consortium including Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Kuwait), and the Infrastructure and Growth Capital Fund (IGCF).

The Government of Pakistan holds a 24.36% stake in KE, with the remaining shares publicly traded.

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