Latest news with #FuelChargesAdjustment
Business Recorder
2 days ago
- Business
- Business Recorder
March 2025: Nepra allows Rs3 negative adjustment for KE consumers
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has allowed negative adjustment of Rs 3 per unit for KE consumers for March 2025 and Rs 0.93 per unit positive adjustment for Discos consumers for April 2025 under monthly Fuel Charges Adjustment (FCA) mechanism. In this regard, NEPRA has issued separate notifications, according to which KE's negative adjustment and Discos positive adjustment will be effective in bills of June 2025. For Discos, NEPRA conducted a public hearing on May 29, 2025 for Discos and on on May 22, 2025 for K-Electric which was attended by representatives of industry and media. March FCA: KE seeks Rs5.02 interim negative adjustment According to determinations of Discos, Amir Sheikh, a commentator, submitted that this positive FCA has lowered the previously announced benefit of around Rs.7.7/kWh adversely impacting cost projections for many industrial consumers. He also questioned the dispatch of RLNG-based power plants despite the purported availability of local natural gas and pointed out that alternative suppliers, such as Mari Petroleum, may offer more cost-effective solutions. KE during the hearing also claimed an amount ofRs.15.2 billion, on account of partial load, open cycle and degradation curves along with startup cost for the period from July 2023 to March 2025. KE also submitted that BQPS-III and KCCP heat rate adjustment for previous MYT amounting to Rs.0.6 billion and Rs.0.2 billion are also pending. KE had sought negative adjustment of Rs 5.02 per unit for April 2025 to refund Rs 6.792 billion to its consumers. However, regarding the amount of Rs.15.2 billion on account of partial load, open cycle and degradation curves along with startup cost for the period from July 2023 to March 2025, the Authority has already provisionally retained an amount of Rs. 12.45 billion, from monthly FCAs from Nov. 2024 to Feb. 2025, in order not to over burden the consumers at a later stage for such pending costs. Thus, as of March 2025, an amount of Rs.2.74 billion is pending on account of partial load, open cycle and degradation curves along with startup cost, as per the claims of K-Electric. On the same analogy of not to over burden the consumers at a later stage and also to ensure timely recovery of prudent costs, the Authority has decided to provisionally withhold an amount of Rs. 2.74 billion from the worked out negative FCA of Rs. 5.0200/kWh (negative Rs. 6.79 billion) for the month of March 2025. NEPRA has allowed negative adjustment of Rs 2.99 per unit which will provide a relief of Rs 4 billion to the consumers of Karachi. Member (Tech) Rafique Ahmad Shaikh, has written additional notes on both the determinations in which he raised different issues. In his note on Discos FCA determination he said that the prolonged forced outage of Guddu's 747 MW Steam Turbine (Unit 16) has necessitated continued operation in open-cycle mode, resulting in additional costs of approximately Rs. 670 million (USD 2.38 million) for the month of April 2025 alone. Cumulatively, the financial losses attributed to this outage have reached approximately Rs. 113 billion (USD 402.14 million) since its outage from July 2022. Given the significance of the issue, the CEO of GENCO-II should be required to present a detailed update on the rehabilitation plan and the progress made on restoring Steam Turbine Unit 16 during each Monthly Fuel Cost Adjustment meeting. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
April FCA: Power Division seeks Rs1.27/unit positive adjustment
ISLAMABAD: Power Division has sought a positive adjustment of Rs 1.27 per unit in electricity tariffs for April 2025 to recover Rs 13 billion under the monthly Fuel Charges Adjustment (FCA) mechanism for consumers of Distribution Companies (Discos). The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on CPPA-G's request on May 29, 2025. According to data submitted to Nepra, total electricity generation in April 2025 stood at 10,513 GWh— an increase of 22.9 percent compared to 8,639 GWh in April 2024. The overall basket price of electricity during April 2025 was Rs 9.9197 per unit, with the total cost of generation recorded at Rs 104.288 billion. March FCA: KE seeks Rs5.02 interim negative adjustment According to data submitted to Nepra, in April 2025, hydel generation recorded an increase of 11.4 per cent to 2,306 GWh in April 2025 as compared to 2070 Gwh in April 2024. Power generation from local coal-fired power plants was 1,525 GWh in April 2025 which was 14.51 percent of total generation at a price of Rs 11.2115 per unit against 881 GWh in April 2024 price of which was Rs 15.2284 per unit. It shows an increase of 73 per cent in local coal generation. Generation of 1,054 GWh was generated from imported coal at Rs 16.6062 per unit (10.02 percent) against only 21 GWh in April 2024 at a price Rs 22.8405 per unit Generation from RFO was 83 Gwh at Rs 28.7679 per unit. Electricity generation from gas-based power plants was 842 GWh (8.01 percent) at Rs 11.8166 per unit against 975 Gwh in April 2024 at a price of Rs 13.2535 per unit. Generation from RLNG was 2,157 GWh (20.52 percent of total generation) at Rs 24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs 2.1038 per unit (17.91 percent of total generation) against 2,043 GWh in April 2024 showing a decrease of 7.9 per cent and electricity imported from Iran was 32 GWh at Rs 25.3465 per unit. Power generation from baggasse recorded 37 GWh at a price calculated at Rs 5.9822 per unit. The energy generated from wind was recorded at 478 GWh, 4.55 percent of total generation and solar at 115 GWh, 1.10 percent of total generation in April 2025. The total energy generated was 10, 513 GWh, against 8,639 GWh in April 2024, showing an increase of 22.9 per cent at a basket price of Rs 9.9197 per unit. The total cost of energy was Rs 104.288 billion. However, with proposed previous negative adjustment of Rs 11.397 billion and sale of electricity IPPs at (negative Rs 1.648 billion) net electricity delivered to Discos in April 2025 was 10,196 GWh at a rate of Rs 8.9488 per unit, total price of which was Rs 91.243 billion. Since in April 2025, net delivered electricity was 10,196 GWh against 8,375 GWh in corresponding month of 2024, showing a growth of 21.7 percent. CPPA-G argued that since reference fuel charges for April 2025 were Rs 7.6803 per unit while actual fuel charges were Rs 8.9488 per unit; hence, positive adjustment of Rs 1.2685 per unit be granted. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
April FCA: PD seeks Rs1.27/unit positive adjustment
ISLAMABAD: Power Division has sought a positive adjustment of Rs 1.27 per unit in electricity tariffs for April 2025 to recover Rs 13 billion under the monthly Fuel Charges Adjustment (FCA) mechanism for consumers of Distribution Companies (Discos). The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on CPPA-G's request on May 29, 2025. According to data submitted to Nepra, total electricity generation in April 2025 stood at 10,513 GWh— an increase of 22.9 percent compared to 8,639 GWh in April 2024. The overall basket price of electricity during April 2025 was Rs 9.9197 per unit, with the total cost of generation recorded at Rs 104.288 billion. March FCA: KE seeks Rs5.02 interim negative adjustment According to data submitted to Nepra, in April 2025, hydel generation recorded an increase of 11.4 per cent to 2,306 GWh in April 2025 as compared to 2070 Gwh in April 2024. Power generation from local coal-fired power plants was 1,525 GWh in April 2025 which was 14.51 percent of total generation at a price of Rs 11.2115 per unit against 881 GWh in April 2024 price of which was Rs 15.2284 per unit. It shows an increase of 73 per cent in local coal generation. Generation of 1,054 GWh was generated from imported coal at Rs 16.6062 per unit (10.02 percent) against only 21 GWh in April 2024 at a price Rs 22.8405 per unit Generation from RFO was 83 Gwh at Rs 28.7679 per unit. Electricity generation from gas-based power plants was 842 GWh (8.01 percent) at Rs 11.8166 per unit against 975 Gwh in April 2024 at a price of Rs 13.2535 per unit. Generation from RLNG was 2,157 GWh (20.52 percent of total generation) at Rs 24.2632 per unit. Electricity generation from nuclear sources was 1,882 GWh at Rs 2.1038 per unit (17.91 percent of total generation) against 2,043 GWh in April 2024 showing a decrease of 7.9 per cent and electricity imported from Iran was 32 GWh at Rs 25.3465 per unit. Power generation from baggasse recorded 37 GWh at a price calculated at Rs 5.9822 per unit. The energy generated from wind was recorded at 478 GWh, 4.55 percent of total generation and solar at 115 GWh, 1.10 percent of total generation in April 2025. The total energy generated was 10, 513 GWh, against 8,639 GWh in April 2024, showing an increase of 22.9 per cent at a basket price of Rs 9.9197 per unit. The total cost of energy was Rs 104.288 billion. However, with proposed previous negative adjustment of Rs 11.397 billion and sale of electricity IPPs at (negative Rs 1.648 billion) net electricity delivered to Discos in April 2025 was 10,196 GWh at a rate of Rs 8.9488 per unit, total price of which was Rs 91.243 billion. Since in April 2025, net delivered electricity was 10,196 GWh against 8,375 GWh in corresponding month of 2024, showing a growth of 21.7 percent. CPPA-G argued that since reference fuel charges for April 2025 were Rs 7.6803 per unit while actual fuel charges were Rs 8.9488 per unit; hence, positive adjustment of Rs 1.2685 per unit be granted. Copyright Business Recorder, 2025
Business Recorder
13-05-2025
- Business
- Business Recorder
Feb FCA: Nepra indicates Rs3.64 relief
KARACHI: The National Electric Power Regulatory Authority (Nepra) has issued its decision regarding KE's petition of provisional monthly Fuel Charges Adjustment (FCA) requested for February 2025, indicating a relief of Rs 3.64 per kWh. This will be passed on to customers in their May 2025 bills. According to KE, Nepra has provisionally retained an amount of PKR 3 billion in respect of adjustments on account of partial load, open cycle and degradation curves along with start-up cost pursuant to Nepra's Decision regarding Generation Tariff for the control period July 2023 onwards from the FCA for February 2025 to be adjusted against the pending claims of KE to ensure that consumers are not burdened at later stage. Fuel charge adjustments are incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following Nepra's scrutiny and approval. KE's petition: Nepra notifies Rs3.02 relief under Jan FCA Customers also benefit from negative FCA in their bills when global fuel prices decrease. Rates charged to customer bills are determined by Nepra and notified by the Federal Government. As per the Regulatory Authority's decision, the FCA shall be applicable to all the consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charges Stations (EVCS) and prepaid electricity consumers of all categories who opted for prepaid tariff. Copyright Business Recorder, 2025
Express Tribune
12-05-2025
- Business
- Express Tribune
NEPRA approves relief for KE consumers
The National Electric Power Regulatory Authority (NEPRA) has approved a relief of Rs3.64 per kilowatt-hour (kWh) on account of K-Electric's (KE) Fuel Charges Adjustment (FCA) for February 2025. The adjustment will be reflected in consumer electricity bills for May 2025. In its decision, NEPRA also provisionally withheld Rs3 billion from KE's claims related to partial load operations, open cycle usage, degradation curves and start-up costs. The step aligns with the authority's generation tariff determination for the control period beginning July 2023 and aims to settle pending claims without transferring the burden to consumers in future adjustments. Fuel charges adjustments are made to account for shifts in global fuel prices and changes in the power generation mix. The costs, once reviewed and approved by NEPRA, are passed on to consumers, often in the form of negative FCAs when international fuel prices decline. NEPRA determines these rates, which are then notified by the federal government. According to NEPRA's latest ruling, the negative FCA will apply to all consumer categories except lifeline users, domestic protected consumers, Electric Vehicle Charging Stations (EVCS) and prepaid users under all categories who have opted for prepaid tariffs. KE noted that a negative FCA of Rs3.6396/kWh has been provisionally approved, subject to a final adjustment once NEPRA determines its Multi-Year Tariff (MYT) for FY202430. Any cost difference under the final MYT will be adjusted in future billing cycles. NEPRA has instructed KE to apply this negative FCA to all eligible consumer categories. The adjustment will appear separately on consumer bills based on units consumed during the relevant month. For any May 2025 bills issued prior to this decision's notification, the relief will be applied in subsequent billing cycles. NEPRA's decision also stipulates that terms under the Winter Demand Initiative will apply where relevant. KE must incorporate the February 2025 FCA in the May 2025 billing cycle and ensure compliance with any applicable court orders. During the public hearing, KE stated that it followed the Economic Merit Order (EMO) in dispatching its own power generation and purchasing electricity from external sources. The company submitted hourly EMO data and monthly operational reports for NEPRA's verification. KE reiterated that Rs13.9 billion remains pending for adjustment for the period between July 2023 and February 2025. Of this, NEPRA has already accounted for Rs9.4 billion in its FCA decisions for November 2024 through January 2025. KE requested that the remaining Rs4.5 billion be adjusted against the current negative FCA to avoid future billing impact on consumers. It further pointed out that similar costs have been approved for XWDISCOs in their monthly FCAs. In reviewing KE's February 2025 FCA request, NEPRA found discrepancies in fuel cost components. For electricity purchased from CPPA-G, KE had applied a rate of Rs8.2292/kWh, slightly above the approved Rs8.2272/kWh, resulting in a downward adjustment of approximately Rs1.64 million. Similarly, for electricity procured from FPCL, KE used a fuel cost component of Rs18.3963/kWh, whereas NEPRA had revised the rate to Rs18.1969/kWh, effective from October 31, 2024. This led to an additional negative adjustment of Rs0.297 million, which has been incorporated into the February 2025 FCA. Taking these corrections into account, NEPRA has calculated a negative FCA of Rs6.6195/kWh for February 2025, amounting to an overall relief of Rs6.664 billion for consumers. NEPRA also acknowledged KE's separate claim of Rs13.9 billion on account of partial load operations, open cycle use, degradation and start-up costs. KE has requested that these amounts be offset against the current negative FCA to enable recovery without increasing future consumer tariffs.
