K-Electric has filed for provisional monthly fuel duty adjustment (FCA) for November 2024, proposing a waiver of Rs 4.98 per kWh for its customers.
The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing for January 15, 2025 to evaluate K-Electric’s proposal.
Following the hearing, NEPRA will determine the final FCA amount that will be passed through to customer bills and the period over which the adjustment will apply.
Separately, the Central Power Procurement Agency Guaranteed (CPPA-G) sought a negative adjustment of 0.63 paise per unit in the tariffs of ex-WAPDA distribution companies (XWDiscos) for November. This is the third consecutive exemption from the FCA for K-Electric customers, following adjustments of 0.16 paise per kWh for September and 0.27 paise per kWh for October.
Fuel charge adjustments are a routine mechanism used by utilities to account for global fluctuations in fuel prices and changes in power generation mix. When fuel costs rise, these adjustments are passed on to consumers, increasing their bills. Conversely, when global fuel prices fall, utilities provide relief by lowering the FCA, which is reflected in lower charges in customers’ bills.
All FCA calculations are made in accordance with NEPRA regulatory guidelines and are incorporated into customer invoices only after FCA review and approval.
The upcoming NEPRA decision will clarify the implementation of the proposed mitigation of Rs 4.98 per kWh and the timeline for its implementation.