K-Electric seeks fifth consecutive FCA relief for customers

KARACHI: K-Electric has submitted a provisional request for its January 2025 monthly fuel charge adjustment (FCA), proposing a reduction of Rs4.84 per kilowatt-hour (kWh) for its customers.

The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on March 20, 2025, to review the proposal. Following the hearing, the final FCA amount and the duration of its application will be announced, determining how much relief will be reflected in upcoming customer bills.

This proposed adjustment marks the fifth consecutive relief for K-Electric customers through FCAs. Previous adjustments saw minor reductions, including 0.18 paisa in September 2024, 0.49 paisa in October 2024, Rs1.23 in November 2024, and Rs3.0 in December 2024.

Fuel charge adjustments are driven by fluctuations in global fuel prices and the evolving energy mix used in electricity generation. When fuel prices increase, the additional cost is passed on to consumers through higher electricity bills. Conversely, when prices decline, customers benefit from lower FCAs.

K-Electric also highlighted certain operational cost adjustments related to part load operations, degradation curves, and startup expenses, which came after the determination of its Generation Tariff post-June 2023.

The company has urged NEPRA to account for these costs in the negative fuel cost variations to ensure that consumers do not face additional financial pressure in the future.

All FCAs are calculated in accordance with regulatory guidelines and are applied to customer bills only after NEPRA’s detailed review and approval, according to the press release issued by K-Electric.

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