ISLAMABAD: K-Electric (KE) has requested a negative adjustment of Rs 4.95 per unit, amounting to Rs 4.94 billion, to refund its consumers under the Fuel Cost Adjustment (FCA) mechanism for December 2024.
According to the National Electric Power Regulatory Authority (NEPRA), KE’s provisional negative FCA request for December 2024 is based on the interim reference tariff from March 2023.
KE has also submitted that, following the determination of Generation Tariffs for power plants for the period post-June 2023, it has provided the necessary partial load, open cycle, and degradation curves, along with startup costs, for approval. An amount of Rs 5 billion from July 2024 to December 2024 is pending adjustment.
KE has requested that the authority also consider the adjustment of accumulated actualized fuel costs to prevent consumers from bearing the burden of fuel cost variations at a later stage.
To address these issues, NEPRA has scheduled a public hearing on February 26, 2025, to review the proposed adjustment. The following points will be discussed during the hearing: (i) whether the requested FCA is justified;(ii) whether KE has followed the merit order in dispatching power to its plants and purchasing power from external sources ; and (iii) whether KE’s request to adjust accumulated fuel costs related to partial load, open cycle, degradation curves, and startup costs from July to December 2024 from the negative fuel cost variation is justified. Ends
