K-Electric (KE) has submitted a provisional Rs. 4.84/kWh monthly fuel charge adjustment (FCA) request for January 2025, to be translated as relief for customers if approved by the National Electric Power Regulatory Authority (NEPRA).
The regulator has scheduled a public hearing for March 20 after which it will issue a decision clarifying the FCA amount to be passed on to customers and the period for which they will be applicable.
According to KE, this is the fifth consecutive FCA being passed on as a benefit to its customers. In September, it noted, the FCA was Rs. 0.18; in October Rs. 0.49; in November Rs. 1.23; and in December Rs. 3.
The FCA refers to the shifts in electricity generation costs based on global variations in fuel prices, and the changes in generation mix. When fuel prices rise, adjustments are reflected in bills, and similarly, when fuel prices decrease, the relief is passed on to the customers in the form of reduced FCA.
KE has also highlighted adjustments regarding part load, degradation curves, startup costs pursuant to determination of Generation Tariff of its Power plants since June 2023 and requested NEPRA to consider the recovery of the same from negative fuel cost variation to ensure that consumers are not burdened at later stage.