The fuel cost adjustment (FCA) for power consumed by K-Electric customers in September was reduced by Rs. 4.70 per unit by the National Electric Power Regulatory Authority (NEPRA) on Tuesday.
After the clearance is publicly announced in a few days, the KE will be compelled to amend November’s bills to reflect a refund to consumers of around Rs. 7.78 billion.
At a public hearing, which was presided over by NEPRA Chairman Tauseef H. Farooqui and members Rafique A. Shaikh and Maqsood Anwar Khan, a decision was made.
The regulator announced that it had reduced the FCA for September by Rs. 4.70 per unit, but that a notification will be released after the data verification process based on proof and invoices will be completed.
The KE had asked for a reduction in FCA of Rs. 4.62 per unit to recoup the Rs. 7.74 billion in customer overcharges in September.
The regulator calculated a reduction of Rs. 4.70 per unit, with a revenue impact of Rs. 7.78 billion, after reviewing the data.
For the third consecutive month, FCA for customers of KE was less than the reference rate.
Due to the record-breaking growth in FCAs over the past several months, which exceeded Rs. 11 per unit, some of the load was lifted.
Last month, KE’s FCA decreased by Rs. 4.89 per unit compared to the reference fuel cost, which had an $8.4 billion revenue impact.
Changes in fuel prices are only automatically passed on to consumers on a monthly basis under the tariff structure.
The federal government has incorporated quarterly tariff adjustments resulting from changes in the power purchase price, capacity charges, variable operation and maintenance expenses, use of system charges, and the impact of transmission and distribution losses into the base tariff.
To read our blog on “K-Electric CEO gets bail-able arrest warrant from Sindh High Court,” click here.
