ISLAMABAD: K-Electric on Friday sought a 51-paisa per unit additional fuel adjustment for August to collect about Rs853 million more from its consumers in the billing month of October. The move contrasts with a proposed 57-paisa per unit refund for the same month by public sector distribution companies (Discos).

This is on top of Rs3.1 per unit fuel cost adjustment (FCA) KE had demanded from the power regulator for July to collect Rs6.2bn.

The National Electric Power Regulatory Authority (Nepra) had on Aug 29 conducted a public hearing for additional FCA for July but has yet to reach a formal decision.

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Earlier, Nepra had allowed KE to charge about Rs10.5 billion from consumers through Rs5.76 per unit adjustments in October and November bills against two consumption months of May and June 2024. Under that decision, KE will charge FCA of Rs2.59 and Rs3.168 per kWh through the billing months of October and November 2024, respectively.

Fuel charge adjustments are incurred by utilities due to global variations in fuel prices and changes in generation mix. The higher FCA is applicable to all consumer categories, except lifeline consumers and protected domestic consumers using up to 300 units, agricultural consumers and electric vehicle charging stations.

The adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

Under the tariff mechanism, changes in fuel cost are passed on to the consumers on a monthly basis through automatic mechanism.

Published in Dawn, September 21st, 2024