KE consumers to get Rs4.69/unit relief in April
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K-Electric (KE) consumers are set to receive a relief of Rs4.69 per unit under the fuel cost adjustment (FCA) for April 2025.
This will translate into a total benefit of Rs7.13 billion for KE consumers, driven by a reduction in fuel prices used for power generation during the month. The relief will be granted as a provisional monthly FCA.
Initially, KE had requested a provisional FCA of negative Rs4.55/kWh for April 2025. Later, it revised the claim to negative Rs4.69/kWh, calculated based on the interim reference tariff of March 2023.
The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 19 to decide on KE's petition to reduce the power tariff.
According to Note-2 of Annex-A (calculation sheet), KE submitted that following the determination of generation tariffs for its power plants for the post-June 2023 period, it had provided the required data on partial load, open cycle, degradation curves, and startup costs for approval. An amount of Rs16 billion, covering the period from July 2023 to April 2025, is still pending adjustment. In addition, heat rate adjustments related to the previous Multi-Year Tariff (MYT) for BQPS-III and KCCP plants — amounting to Rs0.6 billion and Rs0.2 billion respectively — are also pending.
Of the total Rs16 billion, Rs15.2 billion has already been set aside by Nepra in KE's FCA decisions for November 2024 to March 2025.
KE has requested the Authority to also consider these pending adjustments of actual fuel costs, so recovery may be made from the negative fuel cost variations of March and April 2025. The aim is to ensure consumers are not burdened in future billing cycles.
During the hearing, Nepra will deliberate on whether the requested FCA is justified and whether KE has followed the merit order while dispatching power from its own plants and while purchasing from external sources.
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