FCA is based on global fuel prices and is passed on to consumer bills in accordance with NEPRA and the Government of Pakistan’s rules and regulations.
NEPRA issued its decision on K-Petition Electric’s request for reduced fuel charge adjustments (FCA) for the month of November 2022 after following due process. The approved reduction is PKR 7.4307 per unit and will be reflected in consumer bills in January 2023.
After review, FCAs are approved by NEPRA, which also specifies the month in which the charge appears on consumer bills.
FCA is based on global fuel prices and is passed on to consumer bills in accordance with NEPRA and the Government of Pakistan’s rules and regulations. The FCA for November is a lower charge, owing to a drop in international fuel prices.
When compared to September 2022, the price of power purchased from CPPA-G decreased by 37%. Similarly, the price of RLNG and furnace oil fell by 18% and 15%, respectively.
Fuel charge adjustments refer to changes made to the price of fuel, typically as a result of changes in the cost of raw materials or other factors that affect the cost of production. These adjustments are often made by fuel providers, such as oil companies, in order to maintain profitability and keep pace with market conditions.
Fuel charge adjustments can also be made by governments to adjust taxes on fuel. This can be used as a tool to influence consumer behavior, such as encouraging the use of more fuel-efficient vehicles or promoting the use of alternative fuels.
It’s important to note that fuel charge adjustments can have a significant impact on the economy and on individual consumers, particularly for those who rely heavily on fuel for transportation or other purposes.
K-Electric (KE) is a publicly traded company that was founded in Pakistan in 1913 as KESC. KE, which was privatised in 2005, is Pakistan’s only vertically integrated utility, supplying electricity across a 6500 km square territory that includes Karachi and its surrounding areas.