NEPRA approves Rs3.64/kWh cut in KE's February FCA

May 12, 2025 (MLN): The National Electric Power Regulatory Authority (NEPRA) has issued its decision on K-Electric’s (KE) petition for the provisional monthly Fuel Charges Adjustment (FCA) for February 2025, approving a reduction of Rs3.64 per kilowatt-hour (kWh).

This adjustment will be reflected in customer bills for May 2025.

NEPRA has provisionally retained an amount of Rs3 billion from the February 2025 FCA.

This retention covers adjustments related to partial load, open cycle, degradation curves, and start-up costs in line with NEPRA's earlier decision on the Generation Tariff for the control period beginning July 2023.

The retained amount will be adjusted against KE’s pending claims to ensure consumers are not burdened in the future.

Fuel charge adjustments arise due to fluctuations in global fuel prices and changes in the electricity generation mix.

These are reviewed and approved by NEPRA and are then passed on to consumers. When international fuel prices decline, customers benefit from negative FCAs in their bills.

The rates applied to customer bills are determined by NEPRA and formally notified by the Federal Government, according to the press release issued today.

According to NEPRA’s directive, the FCA for February 2025 will apply to all consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and all prepaid electricity consumers who opted for the prepaid tariff.

K-Electric (KE) is a publicly listed company in Pakistan, originally incorporated as KESC in 1913.

It was privatized in 2005 and remains the only vertically integrated power utility in the country, serving Karachi and surrounding areas.

A 66.4% stake in KE is held by KES Power, which comprises investors such as Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Holding) (Kuwait), and the Infrastructure and Growth Capital Fund (IGCF).

The Government of Pakistan owns 24.36%, with the remainder classified as free float shares.

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