Karachi’s power utility K-Electric has submitted a claim for Fuel Price Adjustment (FPA) for April 2024 to the National Electric Power Regulatory Authority (NEPRA).
KE has suggested three options; either decreasing FPA by Rs. 0.74 to Rs. 1.18 per unit in two cases or adding Rs. 0.44 per unit to an already gigantic request of Rs. 18.6 per unit increase for July-March. The distributor is seeking recovery of around Rs. 26 billion on a provisional basis under these options to clear its backlog.
NEPRA will hold a public hearing on the matter later this month.
In summary:
- KE proposes the adjustment be the difference between actual fuel cost and reference monthly fuel cost as per the current tariff.
- KE demands charging consumers the difference between actual and reference monthly fuel costs as per the tariff petition with NEPRA.
- KE suggests adopting the difference between actual fuel costs and annual weighted average fuel reference costs as per the tariff petition with NEPRA.
While the decision on this is pending till the public hearing, NEPRA has already notified an additional Rs. 1.90 per unit charge for June, followed by Rs. 0.93 each in July and August in quarterly tariff adjustments. These rates apply to all consumer categories, except for those using less than 100 units per month, and fall under the protected lifeline category.
NEPRA has allowed positive quarterly adjustments of Rs. 46.6 billion for the third quarter of FY24, applicable from June to August. Notifications have been sent to all DISCOs including KE.
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