Karachi, The National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a public hearing on May 9, 2024, to discuss K-Electric's (KE) petition for provisional monthly fuel charge adjustments (FCA) from July 2023 to March 2024. This review will determine the impact of the proposed adjustments on customer bills for the specified period.

According to K-Electric, the proposed FCA is expected to alter monthly charges by PKR 1.6 to 2, in contrast to the average FCA of PKR 2.89 that other distribution companies have applied. K-Electric has proposed three different scenarios for these adjustments, seeking NEPRA’s approval for any one of them. The outcome of this hearing will guide the final decision on the FCA implementation, which directly affects how much consumers pay for electricity based on fluctuations in fuel prices.

Fuel charge adjustments are a regulatory mechanism used by utilities to pass on the varying costs of fuel to consumers, ensuring that the charges reflect the actual costs of electricity generation. These adjustments are critical for maintaining the financial stability of power utilities while ensuring fair pricing for consumers.

NEPRA’s decision will include guidelines on how K-Electric should recover the adjusted charges from consumers and will issue a notification detailing the chosen method and its implications for K-Electric’s customers. This step is part of NEPRA's broader mandate to oversee and regulate pricing structures in Pakistan's power sector, ensuring transparency and fairness in how utility costs are passed on to consumers.