*NEPRA NOTIFIES REDUCED FCA FOR NOVEMBER 2022*
ISLAMABAD: After due process, NEPRA issued its decision on K-Electric’s petition for reduced Fuel Charge Adjustments (FCA) for the month of November 2022. The approved reduction is at a rate of PKR 7.4307 per unit and will reflect in consumer bills for the month of January 2023. FCAs are approved by the regulator, NEPRA, after review who also specifies the month during which the charge is applied in consumer bills.
FCA is dependent on the global prices of fuel and are passed on to consumer bills under the prescribed rules and regulations of NEPRA and the Government of Pakistan. The FCA for November is a reduced charge primarily due to a decrease in international fuel prices. The price of power purchased from CPPA-G decreased by 37% compared with the month of September 2022. Similarly, for RLNG and Furnace Oil, the price decreased by 18% and 15% respectively.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.