KE consumers to receive Rs6.62/unit relief
The electricity consumers of Karachi are set to enjoy a relief of Rs6.62 per unit in electricity bills on account of Fuel Charges Adjustment (FCA) for the month of February 2025.
The KE consumers have been enjoying a relief in prices of electricity for the last few months due to a reduction in the prices of energy being used in electricity generation.
The latest proposed adjustment reflects continued fluctuation in energy prices, offering further respite in the form of lower charges.
According to details, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing for April 16 to consider KE's request for a provisional negative FCA of Rs6.62 per unit for February 2025.
Sources reveal that KE has submitted the FCA petition using the interim reference tariff from March 2023, reporting a negative variation of Rs6.662 billion in fuel costs during the month in question.
KE has further requested that NEPRA consider the adjustment of pending actualised fuel cost componentsrelated to partial load, open cycle operations, degradation curves, and startup costsaccumulated from July 2023 to February 2025.
KE claims that Rs13.9 billion remains unadjusted, of which Rs7.4 billion was already set aside in FCA decisions for November and December 2024.
The power utility has urged NEPRA to allow recovery of the remaining adjustment from the negative FCA amounts of January and February 2025, arguing that this would avoid placing a financial burden on consumers at a later stage.
NEPRA has identified three key issues for deliberation during the upcoming hearing on K-Electric's FCA request.
These include whether the requested negative fuel charges adjustment for February 2025 is justified, whether KE adhered to the merit order in dispatching electricity from its own power plants and procuring power from external sources.
In addition, it has also urged deliberation on whether the utility's request to adjust actualised fuel costsarising from partial load operations, open cycle usage, degradation curves, and startup costsfrom July 2023 to February 2025, is justified under the prevailing regulatory framework.
NEPRA has invited the interested stakeholders to submit written or oral comments, and the details of KE's petition, relevant rules and determinations are available on NEPRA's website.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 days ago
- Business Recorder
Punjab power relief funded by profits of two power companies
LAHORE: After the reduction in electricity tariffs of two power companies - Quaid-e-Azam Thermal Power Private Limited and the Punjab Thermal Power Private Limited - there will be cut in power tariff for the consumers but its impact would not be too significant, it has been learnt. 'There will be definitely reduction in power tariff of electricity consumers in Punjab and the relief will be financed with profits earned by said two government-owned power companies,' sources in the energy department said, adding: 'In light of the Punjab cabinet decision, the provincial government would approach Nepra for a reduction in power tariffs for these two plants so that these price reductions get permanence and are reflected in the new tariff.' It may be noted that the Punjab government had established a special purpose vehicle company by the name of Quaid-e-Azam Thermal Power (Pvt) Limited (QATPL) in March 2015 under section 32 of the Companies Ordinance 1984 in Independent Power Producer (IPP) mode with the mandate to build, own and operate a 1180 MW RLNG based power plant at Bhikki, Shiekhupura on fast track. Punjab CM announces up to 40pc relief in power tariffs The Punjab Thermal Power (Private) Limited (PTPL) is a private limited company incorporated under the Companies Act, 2017. It is wholly owned by the government of Punjab through the energy department. The main objective of the company is to establish and operate a 1263 MW thermal power plant based on RLNG at Haveli Bahadur Shah near Trimmu Barrage, District Jhang in Punjab. It may be recalled that the provincial cabinet in its meeting had given nod to cut the power tariffs of these two plants by 30-40 per cent to reduce electricity bills. This move is similar to the federal government's which recently renegotiated contracts with independent power plants (IPPs) to reduce tariffs, the sources added. 'Both the companies had curtailed its profits as well as reduced non-developmental expenditures to materialize this move.' Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business Recorder
UK to end ban on retail investors buying crypto exchange-traded notes
LONDON: Britain's financial regulator is to remove a ban on consumers buying crypto exchange-traded notes (ETNs), ditching its previous position of wanting to keep them out of the hands of retail investors. The Financial Conduct Authority said on Friday that allowing retail investors to buy ETNs would support growth and competitiveness, in the latest sign that the UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry. Last year the FCA had approved the launch of crypto ETNs for professional traders but banned retail investors from access, calling the products 'ill-suited' because of 'the harm they pose'. 'We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money,' David Geale, executive director of payments and digital assets at the FCA, said in a statement on Friday. The proposal will now go out for consultation. Pakistan's crypto chief meets New York City mayor, pushes for global blockchain cooperation Britain in April published draft laws for bringing cryptocurrencies under compulsory regulation for the first time, aligning it with the United States' approach, rather than the European Union, which has built rules tailored to the industry. To be sold to individual consumers, the ETNs will need to be traded on an FCA-approved investment exchange, the regulator said. A ban on retail investors trading cryptoasset derivatives would remain, the watchdog added.
Express Tribune
3 days ago
- Express Tribune
Nepra allows relief for Karachi, raises tariff for the rest
The National Electric Power Regulatory Authority (Nepra) on Thursday issued two separate notifications, reducing the power tariff by Rs2.99 per unit for the consumers in Karachi, while increasing the rate by Rs0.93 per unit for the rest of the country. The changes in the tariff had been done on account of fuel adjustment for the month of March in case of Karachi and for the month of April for other parts of the country. In any case, the new changes would be reflected in the current month's electricity bills. According to one notification pertaining to the tariff of the K-Electric, the authority "decided to allow a negative FCA of Rs2.9898/kWh (negative Rs4.045 billion) for March 2025, to be passed on to the consumers in the billing month of June 2025". Nepra said the negative FCA would apply to "all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff". It said that the KE would reflect the fuel charges adjustment in respect of March in the billing month of June. "The adjustment would be shown separately in the consumers' bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains," it added. According to a separate notification, the authority "has reviewed and assessed a National Average Uniform increase of Rs0.9306/kWh in the applicable tariff for Discos [Distribution Companies] on account of variations in the fuel charges for April". The notification added that the FCA should apply to all the consumer categories except lifeline consumers, protected consumers, EVCS and pre-paid electricity consumers of all categories who opted for prepaid tariffs. (WITH INPUT FROM NEWS DESK)
