Islamabad: May 9 , 2024 : The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on May 9, 2024, on the petition submitted by K-Electric (KE) regarding provisional monthly fuel charge adjustments (FCA) for the period of July 2023 to March 2024. The expected impact of proposed FCA will be between PKR 1.6 to 2 per month as compared to the average FCA of PKR 2.89 applied to customers of other power distribution companies for the same period.
KE has filed FCA based on three scenarios and has requested NEPRA for approval of any of the three scenarios. The Authority will provide guidelines for the per unit cost and period of recovery of the relevant FCAs and issue a subsequent notification clarifying the specific method implemented and its impact on customer bills.
During the interactive hearing conducted in-person and online customers raised questions concerning various aspects of the the provisional FCA. Responding to a question about inducting cheaper generation sources, CEO of K-Electric said that “KE has planned to induct 640 MW of affordable power from wind and solar,” further saying, “KE is pursuing these projects on a fast-track basis and trying in earnest to have them commissioned by the next two years. At the same time the company is looking to induct cheap and indigenous fuel sources to further reduce the basket price.”
FCAs are a standard procedure for utilities, reflecting changes in generation mix and fluctuations in global fuel prices used for electricity generation. Individual Distribution Companies cannot determine the FCA or make unilateral changes as final determinations are notified by NEPRA.
*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.