KE Seeks Rs 1.18 Per Unit Cut in Power Tariff

Staff Report

KE seeks to provide a Rs 1.18 per kilowatt-hour relief to its consumers under the FCA for April 2024. Under the second scenario, the requested relief is Rs 0.44 per unit based on the FCA-Reference Monthly Cost. The third scenario proposes a Rs 0.74 per unit relief based on the FCA-Reference Yearly Average Cost.

K-Electric (KE) has formally requested provisional Fuel Cost Adjustment (FCA) relief under three different scenarios for April 2024. The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on June 12, 2024, to deliberate on the matter.

In the first scenario, KE seeks to provide a Rs 1.18 per kilowatt-hour relief to its consumers under the FCA for April 2024. KE Base Tariff May Rise by RS 10 Per Unit

Under the second scenario, the requested relief is Rs 0.44 per unit based on the FCA-Reference Monthly Cost. The third scenario proposes a Rs 0.74 per unit relief based on the FCA-Reference Yearly Average Cost.

The FCA mechanism is designed to adjust the difference between the actual fuel cost and the reference fuel cost. The FCA-Reference Interim Tariff addresses the difference between actual fuel costs versus reference fuel costs as per interim tariff.

The FCA-Reference Monthly Cost examines the variance between actual fuel costs and reference fuel costs according to the tariff petition, while the FCA-Reference Yearly Average Cost calculates the difference based on annual weighted average fuel costs from tariff petitions.

NEPRA has outlined specific issues to be addressed during the hearing. These include determining whether the requested FCA relief by KE is justified and whether KE has adhered to the merit order in dispatching its power plants and purchasing power from external sources.

The regulatory authority has invited all interested and affected parties to submit their written or oral comments or objections for consideration during the hearing.

This engagement is in line with the statutory provisions allowing public participation in such regulatory decisions.