NEPRA TO CONDUCT A PUBLIC HEARING ON K-ELECTRIC’s PETITION ON FCA FOR JUNE 2023
Islamabad: K-Electric (KE) has filed a petition on account of Fuel Charges Adjustment for June 2023 at the rate of PKR 2.336 per unit. Public hearing in this regard will be held on July 26, 2023.
Positive FCA for June 2023 is due to utilization of fuel sources based on economic merit order and increase in fuel price of Furnace Oil, partially offset by decrease in price of RLNG. The price of Furnace Oil increased by 6% compared to the reference month of March. Likewise, the price of RLNG purchased from PLL decreased by 6%, the price of RLNG from SSGC decreased by 2%, while the price of power purchased from CPPA-G decreased by 1% and is subject to NEPRA’s final decision.
FCA is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. FCAs are applied after NEPRA’s scrutiny & public hearings, which are conducted independently for KE and state-owned entities (XWDISCOs). NEPRA Authority also specifies the period during which these costs can be applied to customer bills.