NEPRA to hold hearing on K-Electric’s FCA request next week

WEB DESK: The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on June 12, 2024, to consider K-Electric’s request for provisional monthly fuel charges adjustments (FCA) for April 2024.

K-Electric, currently under NEPRA’s multi-year tariff review, has proposed three scenarios for the FCA and seeks approval for one. This adjustment is crucial for timely cost recovery and to reflect the actual cost of fuel used in power generation.

Fuel Charge Adjustment (FCA) is a mechanism that allows utilities to adjust electricity charges based on fluctuations in global fuel prices and changes in the energy generation mix. These adjustments are scrutinised and approved by NEPRA to ensure fairness and transparency before being passed on to consumers.

K-Electric’s request is driven by the need to align the costs with the economic merit order of fuel utilization and recent changes in fuel prices. This ensures that the utility can recover costs efficiently while maintaining compliance with regulatory standards.

The upcoming public hearing will allow stakeholders to present their views, ensuring that NEPRA’s decision is informed and balanced.

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