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The National Electric Power Regulatory Authority (NEPRA) has approved a national average uniform decrease of Rs 1.23 per unit in the Fuel Charge Adjustment (FCA) for DISCOs for December 2024 and a similar Rs 1.23 per unit FCA reduction for K-Electric for November 2024.
According to NEPRA’s determination, the actual national average uniform FCA for DISCOs in December 2024 was Rs 9.4081/kWh, compared to the reference FCA of Rs 10.6364/kWh. As a result, NEPRA has approved a negative adjustment of Rs 1.2283/kWh for DISCOs.
This reduction will apply to all consumer categories except lifeline consumers, domestic consumers using up to 300 units, Electric Vehicle Charging Stations (EVCS), pre-paid electricity consumers across all categories who have opted for the pre-paid tariff, and agricultural consumers of all DISCOs. However, domestic consumers with Time of Use (ToU) meters will benefit from the negative adjustment, regardless of their consumption level.
The adjustment will be reflected separately in consumers’ bills based on the units billed in December 2024. If any February 2025 bills are issued before the notification of this decision, the adjustment may be applied in the following month.
NEPRA has also approved a negative adjustment of Rs 1.23 per unit for K-Electric (KE) for November 2024, which will be reflected in February 2025 bills. KE had initially sought a negative adjustment of Rs 4.98 per unit to refund Rs 7.179 billion.
NEPRA acknowledged that KE’s new generation tariff for the Multi-Year Tariff (MYT) 2024-30 was determined on October 22, 2024. This tariff includes allowances for costs related to part load, open cycle, degradation curves, and start-up expenses. However, since July 2023, KE’s monthly FCAs have been based on the previous MYT 2017-23, which did not account for these costs.
KE calculated an outstanding cost of Rs 8.7 billion for the period from July 2023 to June 2024. To prevent a sudden financial burden on consumers, NEPRA has decided to allow KE to retain Rs 5.444 billion from the current negative FCA. Any additional amount required will be retained from future negative FCAs. The retained amount will be adjusted against pending costs associated with part load, open cycle, degradation curves, and start-up expenses.
Following these considerations, NEPRA has approved a negative FCA of Rs 1.23/kWh for KE for November 2024, which will be passed on to consumers in February 2025 bills. If any bills are issued before the notification of this decision, the adjustment will be applied in the subsequent month.
