ISLAMABAD: K-Electric (KE) has requested the National Electric Power Regulatory Authority (Nepra) not to pass on the full Rs4.69 per unit negative fuel cost adjustment (FCA) for April to consumers. Instead, the utility has sought to retain approximately Rs800 million to offset previously incurred but unadjusted costs.
In its petition, KE cited over-recovery of Rs7.2 billion in April due to lower-than-anticipated fuel costs but argued that pending adjustments—including Rs16 billion related to partial load, open cycle and degradation curves, and startup costs from July 2023 to April 2025—justify retention. It also referenced heat rate adjustments of Rs600 million and Rs200 million for its Korangi and Port Qasim plants, respectively.
Nepra has already accommodated Rs15.2 billion of these pending claims in previous FCA approvals from November 2024 to March 2025. The regulator has scheduled a public hearing for June 19 to determine whether KE’s plea to offset the remaining costs from the March-April 2025 FCA savings is warranted. Nepra will also evaluate whether KE complied with the merit order in plant dispatch and power procurement.
The FCA mechanism, part of the national tariff structure, is reviewed monthly.
Story by Khaleeq Kiani
