ISLAMABAD: Consumers of K-Electric (KE) are set to receive significant relief on their November 2024 bills, as the power utility company has proposed a negative adjustment of approximately Rs 5 per unit in the Fuel Adjustment Charges (FCA) under the monthly FCA mechanism. However, lifeline consumers, who are already benefiting from a substantial subsidy, will not be eligible for this reduction.
In its power generation data submitted to the National Electric Power Regulatory Authority (NEPRA), KE reported that its power generation cost, based on fuel prices and procurement from the federal government, decreased by Rs 7.179 billion in November 2024. This reduction translates into a Rs 4.98 per unit decrease. This adjustment will provide relief to all consumer categories, except lifeline consumers, who have already received significant tariff relief with a fixed rate of Rs 26.07 per unit for the months of December 2024, January 2025, and February 2025.
According to KE, the provisional FCA for November 2024 has been calculated based on the interim reference tariff of March 2023.
NEPRA has raised questions about whether the requested FCA reduction is justified and whether KE followed the merit order in dispatching power from its plants and procuring power from external sources.
A public hearing on the matter is scheduled for January 15, 2025, where KE will present the details of the proposed FCA reduction for November 2024 and address any concerns raised by consumers, including those from the industry. NEPRA has also invited all interested or affected parties to submit written or oral comments or objections as per the law during the hearing.
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