NEPRA approves KEL's August FCA at Rs0.51 per unit

October 07, 2024 (MLN): National Electric Power Regulatory Authority (NEPRA) concluded its hearing on K-Electric’s petition of provisional monthly fuel charge adjustments (FCA) for August 2024, at Rs0.51 per unit.

Following the public hearing, the regulator will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable.

For July 2024, K-Electric requested the regulator for an increase of Rs3.09 per unit, and the hearing for this request has already been concluded on August 29, while a decision is awaited on the final amount and which month they will be reflected in customer bills.

By comparison, KE’s request for August 2024 reflects a net decrease of Rs2.58 rupees per unit as compared to its requested FCA for July 2024.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix.

These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease.

Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.

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