According to sources, Karachiites will save more than Rs 12 B on electricity bills if NEPRA approves reduction of Rs 10.26 per unit in electricity price.
The National Electric Power Regulatory Authority (NEPRA) on January 31, 2023, will hold a public hearing on K-E (KE) Electric’s request for a Rs 10.26 per unit decrease in the price of electricity due to fuel charge adjustments (FCA) for December 2022.
The FCA is typically only applicable to the consumer’s bills for one month and is reviewed each month in accordance with the tariff regime in place throughout the nation.
In accordance with NEPRA and the government of Pakistan’s established rules and regulations, FCAs are related to changes in the price of fuel globally and are added to consumer bills. According to sources, Karachiites will save more than Rs 12 billion on their electricity bills if NEPRA approves the reduction of Rs 10.26 per unit in the price of electricity and that the bills for February will probably reflect this.
A better utilization of the generation mix and, more importantly, lower prices for RLNG, furnace oil, and power purchased from the central power purchasing agency (CPPA) in December as compared to September 2022 were the main reasons for the lower FCA request in December, according to KE. Fuel prices have been falling for many months now, allowing KE to pass on the advantages of a negative FCA to customers.
After reviewing KE’s submission, the authority will issue instructions on the time frame during which these expenses can be charged to consumers’ bills in accordance with NEPRA regulations. In a statement released on Monday, KE predicted that the December FCA would likely apply to bills issued in February 2023.
The National Electric Power Regulatory Authority is responsible for the regulation of the electric power sector. It is responsible for determining tariffs, approving licenses, and enforcing rules and regulations in the sector to ensure fair competition and protection of consumer rights.