KE consumers set to get Rs 4.95 per unit relief
Staff Report:
The KE consumers are set to enjoy a relief of Rs 4.95 per unit on account of fuel adjustment for month of December 2024. NEPRA has conducted hearing on Wednesday to take a decision in this regard.
The National Electric Power Regulatory Authority (NEPRA) conducted a hearing on KE’s Fuel Charge Adjustments (FCA) for December 2024 which is expected to be passed on as relief in March 2025 bills, following a request for a benefit in the form a negative FCA at the rate of PKR (4.95)/kWh.
The aggregate amount for this relief accounts for PKR 4.94 billion for KE customers. Since September 2024, this is the fourth consecutive negative FCA being passed on as benefit by the power utility to its customers. In a series of negative FCAs, the relief being requested by KE for November 2024 was PKR (4.98)/kWh, preceded by PKR (0.27)/kWh in October 2024, and PKR (0.16)/kWh in September 2024.
During the hearing, various stakeholders including consumer representatives discussed KE’s historical FCA charges and their impact, power procurement and generation costs. KE officials briefed that the negative FCA for December 2024 was driven by furnace oil’s and RLNG’s delta meeting with CPPA-G, driving this relief.Pakistan, Kenya agree on FTA to enhance trade opportunities
Furnace oil was zero against the reference proportion of 13%, RLNG was 19% against the reference proportion of 21%, while the power offtake percentage of the Central Power Purchasing Agency (CPPA-G) had increased from 52% to 74%. The Economic Merit Order (EMO) hourly data has been submitted by KE to NEPRA along with all responses to queries raised by the latter.
Jehanzaib, a Karachi-based consumer, inquired about FCA comparisons between KE and XWDISCOs over the past few years. In response, Rafique Ahmed Shaikh, Member Technical Sindh NEPRA mentioned that KE has provided greater FCA relief to consumers in the last two years compared to other DISCOs and also emphasized that FCA decisions are transparently determined and applied across all distribution companies. Another customer asked for the negative FCA adjustment relief to be accounted for in summers especially, to offset high electricity bills due to increased demand during these months as it would enable sustained relief.
The discussion also touched upon the status of KE’s Bin Qasim Power Station I (BQPS-I) Units 1 and 2, with Arif Bilwani seeking clarification on whether the units were still operational. KE officials responded that while an extension request was submitted to the regulatory authority for having these units operational as a contingency plan, no decision has been notified as yet, and no costs have been claimed for these units.
Umer, representing a think tank, emphasised upon the importance of negative FCAs in reducing power costs for consumers. He commended NEPRA’s approach of gradually adjusting FCA relief citing November’s FCA, rather than passing the entire amount at once, expressing that this strategy would help balance future costs and shield consumers from sudden price spikes.
