NEPRA/ consumers grill PD over request to defer Rs 4.69/kWh negative FCA for KE

ISLAMABAD: NEPRA and consumers from Karachi grilled Power Division for seeking deferment of Rs 4.69 per unit negative adjustment for KE for April 2025 to refund Rs about Rs 6 billion to in the bills of July 2025.
Chief Executive Officer (CEO), Syed Moonis Abdullah Alvi also questioned that when KE consumers were paying higher FCA then why this proposal of uniform FCA did not come. However, he said that whatever decision NEPRA will notify, KE will comply with.
Member (Tech) Rafique Shaikh said that he is not satisfied with the argument of Power Division. Member Law also made some points.
Mian Ibrahim, opposed application of Power Division regarding deferment of FCA. The intervenors also questioned recovery of DSS from KE consumers.
Chairman NEPRA said that decision will be taken as per law and consultation of Authority.
Earlier in another hearing government announced a negative adjustment of Paisa 50 per unit in bills of power Distribution Companies (Discos) for the month of May 2025 to refund about Rs 6.133 billion under monthly FCA mechanism.
The abrupt announcement of negative adjustment in FCA was announced by National Electric Power Regulatory Authority (NEPRA) main reason of negative adjustment was reduction in RLNG prices.
Earlier, CPPA-G had sought positive adjustment of Paisa 10 per unit for May 2025. The main reason of negative adjustment was reduction in RLNG prices.
During a public hearing on Discos FCAs, presided over by Chairman NEPRA, Waseem Mukhtar, Chief Executive Officer (CEO), CPPA-G Rihan Akhtar shared generation data and prices of fuels which constitute FCA basket.
He said, initial calculation had suggested a positive adjustment of Paisa per unit in FCA for May 2025 but when prices of RLNG received, it made it possible to reduce it by Paisa 50 per unit. This was also confirmed by the case officer of NEPRA.
He further stated that generation was slightly less reference for May 2025 as generation from substantial increase in hydel despite apprehensions
In reply to a question, he said that though the government has uncapped Debt Service Charge (DSS) which was 10 per cent of total revenue of power sector to meet any variation in DSS of Rs 3.23 per unit meant to pay interest and principle of amount being raised to eliminate circular debt.
During the hearing, private sector representatives, Aamir Sheikh and Rehan Jawed raised the issue of increase in prices of furnace oil due to imposition of Carbon Levy and Petroleum Levy.