KARACHI: The K-Electric Limited (KEL) has requested the National Electric Power Regulatory Authority (NEPRA) to increase the power tariff by Rs11.33/unit on account of fuel charges adjustment (FCA) for May, a statement said on Thursday.

As per the applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on the consumer bills for only one particular month.

The major impact on the monthly fuel cost adjustment of May 2022 is due to an increase in the fuel price increase of the furnace oil and power purchased from the CPPA-G.

The furnace oil price in May has increased 38 per cent from March, while the price of regasified liquefied natural gas (RLNG) between March and May 2022 has increased 50 per cent.

The price of electricity from CPPA-G in May 2022 has increased 53 per cent. The price of CPPA-G as of May 2022 is Rs13.897/kWh, compared to the price of Rs9.387/kWh in March 2022.

The fuel charge adjustment is incurred by the utilities due to global fluctuation in the fuel prices used to generate electricity and change in the generation mix. These costs are passed on to the consumers following NEPRA’s scrutiny and approval and are one-time charges. The consumers also receive a benefit when the cost of fuel decreases.

As per the NEPRA guidelines, the submissions will be discussed in the public hearing 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 the consumer bills.