KARACHI: The K-Electric Limited (KEL) has proposed an increase of 29 paisas/kWh in the electricity tariff for its consumers under the fuel charges adjustment (FCA) for October 2021.

According to the petition filed before the National Electric Power Regulatory Authority (Nepra), KEL sought Rs516 million adjustment, translating into 29 paisas/kWh increase in the tariff.

As per the mechanism provided in the determination, the impact of change in the KE’s own generation fuel cost component due to variation in fuel prices, generation mix and volume would be passed on to the consumers directly in their monthly bills in the form of the fuel charges adjustment (FCA).

Similarly, the impact of change in the fuel component of the power purchase price (PPP) due to variation in fuel prices and energy mix would also be passed on to the consumers through monthly FCA.

The K-Electric said the delay in determination of monthly and quarterly tariff variations was significantly impacting the working capital position of the company, as the payments to fuel suppliers and the independent power producers (IPPs) were to be made timely and the differential had to be covered through borrowings, which had already reached unsustainable levels.

Nepra would hear the KE’s petition on December 2, 2021.

Moreover, the Central Power Purchasing Agency (CPPA) has also proposed an increase of Rs4.75/kWh under FCA for October. CPPA said a total of 11.29 billion units of electricity was generated in October and 10.98 billion units were sold to power distribution companies.

The hearing, in this regard, will be held on November 30, 2021.

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