Karachi July 19 2023: K-Electric (KE) has filed a petition on account of Fuel Charges Adjustment for June 2023 at the rate of PKR 2.336 per unit. Public hearing in this regard will be held on July 26, 2023.
Positive FCA for June 2023 is due to utilization of fuel sources based on economic merit order and increase in fuel price of Furnace Oil, partially offset by decrease in price of RLNG. The price of Furnace Oil increased by 6% compared to the reference month of March. Likewise, the price of RLNG purchased from PLL decreased by 6%, the price of RLNG from SSGC decreased by 2%, while the price of power purchased from CPPA-G decreased by 1% and is subject to NEPRA’s final decision.
FCA is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. FCAs are applied after NEPRA’s scrutiny & public hearings, which are conducted independently for KE and state-owned entities (XWDISCOs). NEPRA Authority also specifies the period during which these costs can be applied to customer bills.
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 utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih 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 minority shareholder (24.36%) in the company.
