Requested tariff hike under FCA to have Rs0.49/kWh impact


KARACHI: The K-Electric, Karachi’s sole power distributor, has clarified that it has requested the National Electric Power Regulatory Authority (Nepra) for a tariff hike, which will have Rs0.49/kWh average impact of fuel cost adjustment (FCA) of six months.
The KE spokesperson further clarified, “The request made to Nepra is in line with the mechanism given in KE’s multi-year tariff whereby changes in fuel prices, generation and power purchase mix are passed through to customers along with certain annual adjustments.”
“The major impact in monthly fuel cost adjustment is due to increase in global prices of furnace oil, and RLNG. In line with KE’s request, Nepra has scheduled a public hearing to allow monthly fuel cost adjustments (FCA) for the months of January 2021 to June 2021, and quarterly power tariff variation for March 2021. Subject to Nepra’s approval, the actual overall average impact of requests will be only Rs0.49/kWh,” the spokesperson further added.
The KE Spokesperson said, “Similarly, the quarterly tariff variations include requests for March 2021 to the amount of Rs0.366/kWh, with GoP’s policy of uniform consumer power tariff across the country; however, quarterly variation is not likely to impact consumers. Also, the FCA will be charged to consumers based on their consumption during respective months. The requests made by KE will be determined by Nepra.”
Earlier, the K-Electric filed petitions in the National Electric Power Regulatory Authority (Nepra) seeking a Rs1.97 hike in per unit price of electricity on account of fuel adjustment cost for the month of January, Rs2.49 for February, Rs1.49 for March, Rs0.86 for April, Rs0.64 for May, and Rs0.211 for June. In addition, it called for a Rs0.36 per unit hike in electricity tariff on account of quarterly adjustment for the period from Jan-March 2021. – TLTP