The fuel cost adjustment (FCA) has reduced the power rate for K-Electric (KE) customers by 2.15/unit for October, however, it will not apply to lifeline customers, users of less than 300 units, or users of car charging stations.
The National Electric Power Regulatory Authority (NEPRA) informed the FCA of the change on Wednesday following a public hearing to examine KE’s proposed reduction.
Engineers Maqsood Anwar Khan and Rafiq Ahmed Shaikh were present during the hearing, which was presided over by NEPRA Chairman Engineer Tauseef H Farooqi.
K-Electric requested a reduction of Rs7.83/unit under the FCA for the first quarter of the fiscal year 2022–23, according to a NEPRA notification (July-September). K-Electric had additionally asked for a reduction of Rs1.88/unit under the FCA.
However, the regulator determined that the reduction under FCA was Rs2.15, after digesting all the available data.
According to estimates, this FCA will provide customers with relief worth Rs3.59 billion.
NEPRA officials said that K-Electric generated electricity for them for Rs32.96/unit while paying Rs12.1/unit for electricity.
During the hearing, Chairman NEPRA asked whether the authority had been informed in advance of the decision to generate power from diesel and why it was done in October.
