ISLAMABAD: In a move likely to provide some relief to electricity consumers of K-Electric (KE), the National Electric Power Regulatory Authority (NEPRA) has approved a fuel charges adjustment (FCA) of PKR 3.64 per unit for February 2025.
This relief will be passed on to the consumers of K-Electric (KE) in their May 2025 bills.
The FCA relief follows a petition filed by KE for the provisional adjustment due to a drop in global fuel prices and changes in the energy mix used for power generation. After examining the petition and associated data, NEPRA approved the downward revision in electricity charges, bringing much-needed relief to inflation-hit households and businesses of the port city of Karachi.
However, NEPRA has provisionally retained an amount of PKR 3 billion in respect of adjustments on account of partial load, open cycle and degradation curves along with start-up cost pursuant to NEPRA’s decision regarding generation tariff for the control period July 2023 onwards from the FCA for February 2025 to be adjusted against the pending claims of KE to ensure that consumers are not burdened at later stage.
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.
As per the NEPRA’s decision, the FCA shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.
