KE Files Rs. 4.86/ kWh FCA for April

Karachi (Nut Desk) K-Electric requested the National Electric Power Regulatory Authority (NEPRA) to increase the power tariff by Rs. 4.86 per unit on account of fuel charges adjustment (FCA) for the month of April.

The major impact on the monthly Fuel cost adjustment of April 2022 is due to an increase in the fuel price increase of Furnace Oil and CPPA-G. The price of Furnace Oil in April 2022 has increased by 22% from March 2022.

The price of electricity from CPPA-G in April 2022 has increased by 14%. The price of CPPA-G as of April 2022 is Rs 10.664 / KWh as compared to the price of Rs. 9.387/ KWh in March 2022.

Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval. Consumers also receive a benefit when the cost of fuel decreases.

As per NEPRA guidelines, the submissions will be discussed in the public hearing on the 14th June. The regulator will approve the request, after scrutiny, and issue instructions on the period during which these costs can be applied to consumer bills.