Under the monthly Fuel Charges Adjustment (FCA) mechanism, K-Electric (KE) has requested an unprecedented increase in its pricing of Rs 11.33 per unit to pass on an additional financial burden of Rs 22.65 billion to the consumers for May.
The FCA adjustment proposal for KE is set for a public hearing by the National Electric Power Regulatory Authority (NEPRA) on July 4, 2022.
In a letter to the Registrar NEPRA, KE’s Director of Finance, Ayaz Jaffar Ahmed, stated that the assessment for May 2022 is based on the CPPA-requested G’s rate for the month of May 2022 and is susceptible to change based on the determination for May 2022 that NEPRA will give.
Additionally, in accordance with a Supreme Court ruling from November 2, 2020, the SSGC is billing the GIDC arrears installment of Rs. 2.425 billion every month.
However, NEPRA noted in its FCA decision for the month of June 2021 that “considering the fact that K-Electric has obtained a stay order from the SHC in the matter, (it has been) decided not to allow any amount on account of GIDC till final decision by the SHC in the matter.”
As a result, GIDC for May 2022 will be claimed in accordance with the Honorable SHC’s final ruling on the subject.
Ahmed claims that KE dispatches are made in accordance with Economic Merit Orders (EMO) using both its own producing units and imports from outside sources when fuel is available.
He has attested that there is no late payment surcharge, markup, or interest included in the cost of gasoline and power purchase claim.
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