K-Electric Seeks Massive Hike Of Rs11.33 Per Unit In Power Tariff.

ISLAMABAD -- No relief is in sight for Karachiites as K-Electric has sought another massive hike of Rs 11.33 per unit in electricity tariff on account of fuel charges adjustment (FCA) for the month of May.

Following the increase of Rs 5.28/unit in power tariff for KE's consumers on account of fuel charges adjustments for April 2022, the company has filed fresh petition with National Electric Power Regulatory Authority (NEPRA) for another hike of Rs 11.33/unit on account of monthly FCA for May. The increase, if approved, will have an impact of Rs 22.65 billion on the KE's consumers.

NEPRA has framed couple of questions for discussion including, whether the requested fuel price variation is justified? Whether K-Electric has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources? The regulator will hold will hold public hearing on the KE's petition on July 4. The regulator will approve the request, after scrutiny, and issue instructions on the period during which these costs can be applied to consumer bills.

Meanwhile KE's spokesperson while commenting in the petition said that K-Electric requested the National Electric Power Regulatory Authority (NEPRA) to increase the power tariff by Rs 11.33/unit on account of FCA for the month of May. Per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.

According to the spokesperson, the major impact on the monthly FCA is due to an increase in the fuel price increase of furnace oil and power purchased from CPPA-G. The price of furnace oil in May 2022 has increased by 38% from March 2022 while the price of RLNG between March to May 2022 has increased by 50%. The price of electricity from CPPA-G in May 2022 has increased by 53%. The price of CPPA-G as of May 2022 is Rs 13.897/KWh as compared to the price of Rs 9.387/ KWh in March 2022.

Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to...