Islamabad:
Electricity consumers in Karachi will enjoy relief since K-Electric (KE) has sought a reduction of RS4.95 per unit in energy rates by December 2024 due to the adjustment of fuel charges.
The National Authority for Electric Energy Regulation (NEPRA) has scheduled a public hearing on February 26 to consider KE request from a negative adjustment of fuel charges (FCA), according to industry sources.
According to KE’s request, the adjustment is based on the provisional reference rate of March 2023, resulting in a total reduction of RS4.94 billion in fuel costs.
In addition to the FCA adjustment, KE has requested Napra to consider an additional adjustment of RS5 billion for fuel costs incurred from July to December 2024.
The energy utility argues that the amount is pending due to the partial load, the open cycle, the degradation curves and the starting costs. He has urged authority to allow adjustment to avoid a future burden for consumers.
According to the details, Nepera has framed three key questions for deliberation during the hearing, including if the requested FCA is justified and if KE has followed the order of merit while sending its power plants, as well as the purchase of energy from external sources .
It will deliberate even more on whether the KE application to consider the adjustment of the accumulated update of the fuel cost due to the partial load, the open cycle and the degradation curves together with the starting cost of July to December 2024, of The negative variation of the cost of fuel is justified.
