Karachi, October 3, 2024: NEPRA concluded its hearing on K-Electric’s petition of provisional monthly fuel charge adjustments (FCA) for August 2024, at PKR 0.51 per unit. Following the public hearing the regulator will issue a decision clarifying the FCA amount to be passed on to customer bills and the period for which they will be applicable.
For July 2024, K-Electric requested the regulator for an increase of PKR 3.09 per unit, and the hearing for this request has already been concluded on August 29, while a decision is awaited on the final amount and which month they will reflect in customer bills. By comparison, KE’s request for August 2024 reflects a net decrease of PKR 2.58 rupees per unit as compared to its requested FCA for July 2024.
Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by NEPRA and notified by the Federal Government.
*ABOUT K-ELECTRIC:*
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.