ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday notified a 17-paisa per unit negative fuel cost adjustment (FCA) for K-Electric consumers.

The negative FCA would be adjusted to consumer bills during December. KE had proposed a 16-paisa refund to consumers for September consumption that was increased to Rs0.1758 by the regulator with a net revenue impact of Rs276 million to the consumers.

This will slightly reduce the impact of a positive FCA of Rs3.04 per unit to be charged to consumers in December, previously approved by Nepra for electricity consumption in July. Effectively, the consumers would pay an additional FCA of Rs2.86 per unit.

The business, trade and political representatives from Karachi had raised questions over a minor negative adjustment in fuel costs for electricity consumed in September, saying the Karachi-based business and commercial activities were at a disadvantage against the rest of the country.

At a public hearing on KE’s petition for a 16-paisa per unit refund to its consumers with a net fiscal impact of Rs247m, the consumer representatives said the ex-Wapda distribution companies (Discos) had sought 71-paisa per unit negative FCA.

Utilities incur fuel charge adjustments due to global fuel price variations and generation mix changes. The higher FCA, the notification said, would apply to all consumer categories except lifeline power consumers, prepaid metering consumers and electric vehicle charging stations (EVCS).

The adjustment for monthly FCA also applies to domestic consumers having Time of Use (ToU) meters, irrespective of their consumption level.

Published in Dawn, December 4th, 2024