The consumers of K-Electric are set to get a tariff relief of over Rs10 per unit on account of fuel cost adjustment for December 2022.
K-Electric has filed a petition requesting the National Electric Power Regulatory Authority (Nepra) to approve a reduction of Rs10.26 per unit in consumer bills under fuel cost adjustment for December.
Earlier, Nepra allowed K-Electric to slash power tariff by Rs7.43 per unit for November 2022, which was reflected in the consumer bills of January 2023.
Fuel cost adjustment is reviewed every month as per Nepra’s tariff regime applicable across the country and is usually applicable to consumer bills for one month only. It depends on changes in global fuel prices and is passed on to consumers under the prescribed rules and regulations of Nepra and the government of Pakistan.
For the past few months, prices of different fuels such as liquefied natural gas (LNG) and furnace oil have decreased consistently in the international market, which is benefitting K-Electric consumers as well.
Power tariff is going down also because of the efficient and effective utilisation of K-Electric’s power generation network.
The relief of over Rs10 per unit is likely to be passed on to consumers in the bills of February 2023.
The cost of re-gasified LNG, furnace oil and electricity purchased from Central Power Purchasing Agency-Guarantee (CPPA-G) has gone down significantly in line with fluctuations in global markets.
Re-gasified LNG, furnace oil and power purchase from CPPA-G have become cheaper by 17%, 15% and 29% respectively as compared to September 2022, which is the primary reason for the December fuel cost adjustment.
The regulator will conduct a public hearing on January 30, where it will consider whether the proposed reduction is justified or not.
