ISLAMABAD: The K-Electric has sought about Rs5.27 per unit increase in its monthly fuel cost adjustment (FCA) for electricity it sold to consumers in March to generate Rs8.6 billion in additional revenue in the billing month of May.

The Karachi-based power utility had earlier sought Rs4.89 per unit increase in FCA for March to generate Rs7.95bn from consumers but later revised its demand to Rs5.27 per unit with revenue impact of Rs8.6bn.

It said the increase was on account of higher tariff of national grid and RLNG cost for its own power generation.

The National Electric Power Regulatory Authority (Nepra) has called a public hearing on April 27 to examine if KE’s request for fuel cost variation was justified and it had followed economic merit order while procuring electricity from national grid and its own power plants.

In its petition filed before the regulator, the power utility demanded charging an additional cost of Rs5.275 per unit from its consumers under monthly FCA for March. Once approved, the K-Electric will be able to collect Rs8.6bn from its consumers in their monthly bill of May 2022.

The KE claimed that its request for increase in monthly FCA for March was on the basis of request of Central Power Purchasing Agency’s Rs8.56 per unit increase in FCA for the month of March, which was later raised to Rs9.39 per unit.

Moreover, installment of Gas Infrastructure Development Cess (GIDC) arrears amounting to Rs762 million per month was being billed by SSGC as per Supreme Court order.

Published in Dawn, April 21st, 2022