March FCA: KE seeks Rs5.02 interim negative adjustment
ISLAMABAD: K-Electric has requested a provisional negative adjustment of Rs5.02 per unit under the Fuel Cost Adjustment (FCA) mechanism for March 2025, which would result in a refund of Rs6.792 billion to its consumers.
According to the National Electric Power Regulatory Authority (NEPRA), KE submitted in its calculation sheet (Note-2) that, following the determination of generation tariffs for its power plants post-June 2023, it has provided data related to partial load, open cycle operations, degradation curves, and startup costs.
KE has sought approval for Rs15.6 billion covering the period from July 2023 to March 2025. Out of this amount, the Nepra has already set aside Rs9.6 billion in its FCA decisions for the months of November 2024 to January 2025.
Feb FCA: Nepra indicates Rs3.64 relief
The KE has also requested that the Nepra consider adjusting the accumulated actual fuel cost variations—specifically related to partial load, open cycle operations, degradation, and startup costs—from the negative fuel cost variation pool. This, KE argues, would ensure that consumers are not burdened with these costs at a later stage.
The NEPRA has scheduled a public hearing on May 22, 2025 to deliberate on the proposed adjustment.
For deliberation during the hearing, following issues have been framed which are as (i) whether the requested FCA is justified; (ii) whether KE has followed the merit order while giving dispatch to its power plants as well as power purchases from external sources; and (iii) whether the request of KE to consider adjustment of accumulated actualisation of fuel cost on account of partial load, open cycle and degradation curves along with startup cost from July to December 2024, from the negative fuel cost variation is justified? All the interested/affected parties have been invited to submit written/oral comments or objections as permissible under the law at the hearing.
Copyright Business Recorder, 2025
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